Elon Musk stands to lose billions over 2018 Tesla tweets in US trial

by IANS |

San Francisco, Jan 19 (IANS) The controversial 2018 tweets by Elon Musk on taking Tesla private has come back to haunt him and he stands to lose billions in a class-action lawsuit by Tesla investors that went underway here.

The plaintiffs argued that Musk's tweets about taking Tesla private, in which he said he had "funding secured", led them to lose millions of dollars.

In a class-action lawsuit, Tesla shareholders who traded the company's stock in the days after Musk's tweet sued him "for billions of dollars in damages", reports The Verge.

Glen Littleton, a Tesla investor and lead plaintiff, said he believed in Musk's tweet and liquidated between 90 per cent to 95 per cent of his stocks.

"I couldn't afford to stay in," Littleton told jurors.

His lawyers argued he lost $3.5 million as a result, according to the report.

"I'm hoping we recover the losses that were incurred because of the tweet," Littleton was quoted as saying.

Musk in August 2018 tweeted: "Am considering taking Tesla private at $420. Funding secured."

"Shareholders could either sell at 420 or hold shares & go private," he added.

He further stated that "my hope is 'all' current investors remain with Tesla even if we're private. Would create a special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity's SpaceX investment".

Latest News
Sachin Tendulkar, BCCI office-bearers to felicitate World Cup-winning U19 women's team Tue, Jan 31, 2023, 12:19 AM
Female ex-SDF member sues Japan govt, abusers for sexual assault Tue, Jan 31, 2023, 12:18 AM
28 killed, 150 injured in blast at Peshawar mosque (3rd Ld) Tue, Jan 31, 2023, 12:15 AM
New cases declining, can achieve target of Leprosy Mukt Bharat by 2027: Mandaviya Tue, Jan 31, 2023, 12:14 AM
Upendra Kushwaha says stones pelted on his convoy in Bhojpur Tue, Jan 31, 2023, 12:12 AM
India's first glass igloo restaurant come up in J&K's Gulmarg Tue, Jan 31, 2023, 12:12 AM
Plane carrying Andhra Pradesh CM makes emergency landing Tue, Jan 31, 2023, 12:11 AM
MP minister Narottam Mishra plays anchor role in bringing back Katni mayor to BJP Tue, Jan 31, 2023, 12:10 AM
Protests in Assam over inclusion of 60 villages in Bodoland region Tue, Jan 31, 2023, 12:09 AM
Formula E World: Victory for Pascal Wehrlein and Porsche Sat, Jan 28, 2023, 12:15 PM
Man City beat Arsenal 1-0 to reach FA Cup fifth round Sat, Jan 28, 2023, 12:13 PM
Leipzig edge Stuttgart to move second in Bundesliga Sat, Jan 28, 2023, 12:05 PM
ILT20: Marcus Stoinis joins Sharjah Warriors, says he is mentally prepared for UAE weather Sat, Jan 28, 2023, 12:02 PM
Indian-American loses election to head Republican Party after challenging establishment Sat, Jan 28, 2023, 12:01 PM
Record rainfall overnight in Auckland causes massive flooding Sat, Jan 28, 2023, 11:59 AM