A trial over a tweet Elon Musk made in 2018 kicked off in San Francisco’s federal courtroom.
The matter is over a tweet Musk made in August 2018, where he claimed to have sufficient funds to take Tesla private, which affected the price of shares.
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Musk is in court and is taken to task by shareholders who were led to believe sufficient funding to take Tesla private was secured.
The Tesla head is being sued for allegedly costing shareholders billions in dollars, a result of a tweet that may have affected Tesla’s share price.
Shareholders argue that the tweets were false and affected the price of securities including stock at the time.
Proof that a tweet may have impacted buyer and shareholder decision is at play which mostly will set a precedent to the amount of trouble a tweet can leave you in.
Musk took over Twitter in October 2022 only to shed some exec weight off the company.
Labeling himself as the new Twitter Twit on his Twitter Bio, Musk closed the $44 billion deal which had a deadline for Friday, October 28.
The deadline was set by a Delaware Chancery Court judge, earlier in October, to finalize the deal before the Friday, with a threat to schedule a trial if no deal was reached.
This was the climax to a legal fracas that began in April 2022 when Musk signed the deal to acquire Twitter, only to later back out of it.
This led to a lawsuit from Twitter, in an attempt to have the deal finalized.
Musk entered Twitter headquarters in San Francisco carrying a sink through the lobby area on Wednesday, October. 26, 2022 as a message to investors and critics.
The move was to officiate the deal which has resulted in the axing of Twitter CEO Parag Agrawal, CFO Ned Segal and Chief Legal Counsel Vijaya Gadde.
Musk is expected to increase Twitter’s subscriber base revenue as part of his strategy.
The Tesla head has made it clear that he also plans to promote free speech by cutting back on moderating content.
He is yet to outline the parameters of what he deems as free speech.
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