A San Francisco federal court is set to begin a trial on Monday, April 12th, to determine if a tweet sent by Tesla CEO Elon Musk violated securities laws. The tweet in question, sent in August 2018, stated that Musk was considering taking Tesla private at $420 per share, and that funding had been secured.
The Securities and Exchange Commission (SEC) alleges that Musk’s tweet misled investors, and they are seeking to hold Musk accountable. Musk has denied any wrongdoing, and his lawyers have argued that the tweet was “a joke, and nothing more.”
The trial is expected to last several days and will feature testimony from witnesses such as Tesla Chief Financial Officer Zachary Kirkhorn and Tesla board member Steve Jurvetson.
The outcome of the trial could have potential implications for Musk’s future as Tesla’s CEO, as well as the company’s stock price. It is unclear what the consequences of a guilty verdict would be, but it could include a fine or even a ban from being an officer or director of a publicly traded company.
The trial will be closely watched by investors, legal experts, and others interested in the case as it could provide insight into Musk’s mysterious ways and the potential consequences of his tweets.