Business
Elon Musk stands to lose billions over 2018 Tesla tweets in US trial
San Francisco, Jan 19
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".
1 hour ago
The BioInnovation Institute and Science presented the Innovation Prize to Indian American Aditya Kunjapur
1 hour ago
Pennsylvania Republican primary results show Haley with over 150,000 votes.
2 hours ago
Mandates airline refunds and fee transparency introduced by Biden
2 hours ago
Initiative to tackle newborn malnutrition in rural India promoted by the Indian Consulate in NY
2 hours ago
In Los Angeles, a high-ranking US diplomat convenes with the Jain community
2 hours ago
The Peabody Award has nominated two Indian documentaries as finalists.
just now
3 hours ago
Indian rupee to appreciate to Rs 82–82.50 in FY25: CARE Ratings
3 hours ago
Reservation given earlier to Muslim community continued in K’taka: CM Siddaramaiah
3 hours ago
Congress, SP playing divisive politics, says PM Modi in Agra
3 hours ago
Nestle India’s net profit up 27 pc in Q4; to form a JV with Dr Reddy’s Laboratories
4 hours ago
BMW's another all-electric car launched in India
4 hours ago
Cong candidate in Kerala suspects foul play as list of poll officials leaked, one suspended