By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Times CatalogTimes CatalogTimes Catalog
  • Home
  • Tech
    • Google
    • Microsoft
    • YouTube
    • Twitter
  • News
  • How To
  • Bookmarks
Search
Technology
  • Meta
Others
  • Apple
  • WhatsApp
  • Elon Musk
  • Threads
  • About
  • Contact
  • Privacy Policy and Disclaimer
© 2025 Times Catalog
Reading: Elon Musk Cleared Of Fraud In ‘Funding Secured’ Trial
Share
Notification
Font ResizerAa
Font ResizerAa
Times CatalogTimes Catalog
Search
  • News
  • How To
  • Tech
    • AI
    • Apple
    • Microsoft
    • Google
    • ChatGPT
    • Gemini
    • YouTube
    • Twitter
  • Coming Soon
Follow US
  • About
  • Contact
  • Privacy Policy and Disclaimer
© 2025 Times Catalog
Times Catalog > Blog > Elon Musk > Tesla > Elon Musk Cleared Of Fraud In ‘Funding Secured’ Trial
Elon MuskTesla

Elon Musk Cleared Of Fraud In ‘Funding Secured’ Trial

Hammy B.
Last updated: February 19, 2023 12:35 pm
Hammy B.
Share
5 Min Read
Elon Musk Found Not Guilty Over Tweets About Tesla - Times Catalog
SHARE

    SAN FRANCISCO: A little respite for Elon Musk, plagued by turmoil in his businesses: a California jury declared him not guilty of fraud on Friday for his tweets claiming in 2018 that he was going to take Tesla out of the stock market.

    The jurors quickly reached this verdict Friday after three weeks of a trial triggered by the complaint of investors who felt they had been harmed by the messages of the multi-entrepreneur.

    The latter had surprised the markets on August 7, 2018, by saying on Twitter that he wanted to withdraw his automotive group from Wall Street at a price of 420 dollars per share, or 23% more than the closing price the day before, then by ensuring that the funding was “secured”.

    The stock surged, ending up 11% on the day, before declining in the following days.

    Investors then betting on a drop in the action, “short-sellers”, believed that Elon Musk had broken stock market laws by presenting misleading information that pushed the action up, and demanded compensation.

    The judge in charge of the case, Edward Chen, had already concluded that the tweets were indeed misleading and that the entrepreneur had acted “irresponsibly”.

    Jurors had to decide whether the tweets artificially inflated the action and, if so, how much that may have affected the plaintiffs.

    They also then had to determine whether members of Tesla’s board of directors could be held responsible.

    By answering the first questions in the negative, the jurors quickly exonerated Elon Musk and Tesla.

    “Thank God for the wisdom of the people prevailed!” reacted the boss on Twitter. “I am deeply grateful to the jury for finding my innocence unanimously” in this case, he added.

    For Dan Ives, of the Wedbush cabinet, this decision “dispels one of the shadows hanging over Tesla”.

    The electric vehicle maker did post record profits in 2022. But given the economic situation, some investors doubt the strength of demand for its high-priced cars in an increasingly competitive market.

    Elon Musk must also manage a complicated situation at Twitter, which he has taken in turmoil since he became the owner at the end of October by laying off more than half of the employees or by making controversial decisions such as the return of suspended Internet users. by the previous leadership, including Donald Trump.

    At the helm at the start of the trial for three days, the multi-billionaire had assured that he had “never” sought to deceive investors. He really thought he had access to enough money following a meeting with the Saudi sovereign wealth fund, he said, pointing out that he could also have sold shares of his other flagship, SpaceX.

    However, Tesla quickly abandoned the idea of ​​delisting.

    The American stock market policeman, the SEC, believing that the boss had not provided proof of his financing, forced him to cede the chairmanship of the board of directors, pay a fine of 20 million dollars, and subsequently demanded that his tweets directly related to the activity of Tesla are pre-cleared by a competent lawyer.

    On Friday, during his final argument, plaintiffs’ lawyer Nicholas Porritt tried to argue that Elon Musk could not with impunity advance erroneous information that could influence investors.

    The rules of the financial markets are there to ensure that “everyone respects the same standards”, including the billionaires, underlined the lawyer. “Do the rules apply to everyone or can Elon Musk do what he wants and not face the consequences?”

    The boss’s lawyer, Alex Spiro, had for his part admitted that writing “secure financing” was “technically inaccurate”.

    But funding “was never the problem”, he repeated several times. “Just because it’s a bad tweet doesn’t make it a fraud.”

    You Might Also Like

    The xAI–X merger is a good deal — if you’re betting on Musk’s empire

    OpenAI countersues Elon Musk to stop his attacks and ‘fake takeover bid’

    X now lets you query Grok by mentioning it in replies

    Elon Musk wants to buy OpenAI for $97.4 billion

    Elon Musk’s promises for Tesla in 2024, from robotaxis to Optimus bots

    TAGGED:elon muskhyperlinkneuralinkSpaceXteslatheboringcompany
    Share This Article
    Facebook Twitter Pinterest Whatsapp Whatsapp Copy Link
    What do you think?
    Love0
    Happy0
    Sad0
    Sleepy0
    Angry0
    Previous Article Nix's Hydration Biosensor Is For Athletes Who Sweat The Details - Times Catalog Nix’s Hydration Biosensor Is For Athletes Who Sweat The Details
    Next Article Twitter Will Let Businesses Keep Their Gold Checkmarks — For $1,000 Per Month - Times Catalog Twitter Will Let Businesses Keep Their Gold Checkmarks — For $1,000 Per Month
    Leave a comment Leave a comment

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Stay Connected

    144FollowersLike
    23FollowersFollow
    237FollowersPin
    19FollowersFollow

    Latest News

    Logitech’s MX Creative Console now supports Figma and Adobe Lightroom
    Logitech’s MX Creative Console now supports Figma and Adobe Lightroom
    Apps News Tech April 23, 2025
    Samsung resumes its troubled One UI 7 rollout
    Samsung resumes its troubled One UI 7 rollout
    Google News Samsung Tech April 23, 2025
    Google Messages starts rolling out sensitive content warnings for nude images
    Google Messages starts rolling out sensitive content warnings for nude images
    Apps News Tech April 22, 2025
    Vivo wants its new smartphone to replace your camera
    Vivo wants its new smartphone to replace your camera
    News Tech April 22, 2025
    Times CatalogTimes Catalog
    Follow US
    © 2025 Times Catalog
    • About
    • Contact
    • Privacy Policy and Disclaimer
    Welcome Back!

    Sign in to your account

    Lost your password?