Tesla CEO Elon Musk has been found not guilty by a US jury over his 2018 tweet that was perceived to be misleading investors when he mentioned about securing funding to make Tesla a private company. Shares of Tesla rose 1.6 per cent in after-hours trading following the verdict.
The tweets sent the Tesla share price on a rollercoaster ride, and a class action suit was filed against Musk claiming that the tech billionaire acted recklessly in an effort to squeeze investors who had bet against the company.
Musk then had agreed to step aside as Tesla board chairman and settled for $20m.
On August 7, 2018, Musk tweeted, “Am considering taking Tesla private at $420. Funding secured.”
According to reports, the nine jurors in California court took less than two hours to reach their verdict on Friday afternoon.
While appearing on the witness stand, Musk said, “Just because I tweet something does not mean people believe it or will act accordingly.”
Shareholders had argued that “funding secured” suggested more than a verbal agreement.
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Musk—who had wanted the trial shifted to Texas, where Tesla is based, arguing that he could not get a fair trial in San Francisco —welcomed the verdict.
Taking to Twitter, the 51-year-old said, “Thank goodness, the wisdom of the people has prevailed!”
“I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.”
Nicholas Porritt, a lawyer for the investors, said in a statement, “We are disappointed with the verdict and are considering next steps.”
“A dark chapter is now closed for Musk and Tesla,” Wedbush analyst Dan Ives told Reuters, adding that some Tesla investors feared Musk might have to sell more Tesla stock if he lost.
(With inputs from agencies)
