Elon Musk Cleared of Liability in Federal Trial Over ‘Funding Secured’ Tweet

Elon Musk, CEO of Tesla, has been found not liable in a federal trial over a tweet he posted in 2018 claiming that he had secured funding to take the company private.

The lawsuit alleged that the tweet misled investors and violated securities laws. However, a jury of five women and three men found that Musk was not liable for fraud.

The tweet in question was posted in August 2018 and read, “Am considering taking Tesla private at $420. Funding secured.” The tweet caused the company’s stock price to jump and prompted a Securities and Exchange Commission investigation.

The defense argued that Musk’s tweet was a “hyperbolic statement” and that he had a reasonable basis for believing he had secured the funding.

The jury found that Musk did not act with “actual malice” or with “reckless disregard” for the truth. The jury also found that Musk did not make false or misleading statements.

The trial was closely watched by investors, legal experts, and the media. The verdict could have implications for how public companies and their executives communicate with investors.

For more information on the trial and its outcome, view full coverage on USNN.