Shulou(Shulou.com)11/24 Report--

According to foreign media reports, Musk, Tesla and other directors of Tesla are facing shareholder lawsuits and billions of dollars in compensation for a tweet by Musk four years ago.

On January 17, US Eastern time, the jury election was officially launched in a lawsuit in Federal Court in San Francisco. The selected jurors will form a jury to try whether Musk committed securities fraud through a tweet to privatize Tesla in 2018.

According to previous reports, Musk tweeted in 2018 that he was considering privatizing Tesla at $420 a share. And two words were added to the tweet at the time: "Funding secured". But the truth is that while Mr Musk did talk to executives of the Saudi sovereign wealth fund about the money he needed to privatise Tesla, it was not "in place" at all.

Some investors represented by the prosecution accused Musk of lying at the time, which caused Tesla's share price to fluctuate sharply in 10 days before Musk announced his plan to go private, causing huge losses to investors. Musk's tweets cost investors billions of dollars.

The lawsuit lasted more than four years and did not enter the trial stage until this week. On Tuesday, January 17, US Eastern time, the Federal Court in San Francisco officially launched the jury election and opened the trial, deciding whether Musk committed securities fraud through the 2018 tweet.

According to previously disclosed court documents, the defence said they would argue that Mr Musk had sufficient reason to believe that funds for the privatisation deal were available. He has met on several occasions with Yasir Al-Rumayyan, managing director of the Saudi sovereign wealth fund, who also urged him to privatise Tesla and offered up to $60 billion in support.

But the current situation seems to be against Musk's side, and the federal judge in charge of the case, Edward Chen, seemed to assume from the beginning that Musk's tweets were false. And last week, Edward Chen also denied a request by Musk and other defendants to transfer the case from San Francisco to Texas, where Tesla is currently based.

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