Elon Musk claimed there in 2018 that he had sufficient funds to take Tesla private.
When “wrong and misleadingby a judge, according to a document filed by investors who had filed a complaint against the group.
Those investors filed a lawsuit against the electric car maker and Elon Musk, accusing them of losing money after this tweet was posted, sending the stock reeling for a few days. They allege in the document filed on Friday and consulted by AFP on Saturday that the judge in charge of the case is ordering Elon Musk to stop publicly confirming that he “secure financingto take the company public for $420 a share, as he did again at a conference on Thursday.
Elon Musk has assured in the past that he is currently in talks with the Saudi Arabian sovereign wealth fund and is convinced of the outcome of these negotiations. But no deal was ever announced.
“False and Misleading Claims”
According to the document filed by the investors, the judge recently concluded in an unreleased partial judgment that “these claims by Musk were false and misleading and that Musk made these false statements recklessly and with full knowledge of the facts that he misrepresented in his tweets“. Plaintiffs believe Musk launched a public campaign”to present a contradictory and wrong versionof the tweet in question, which could affect the jury in a trial due to take place in May.
The American stock exchange police officer also filed a complaint at the time because he believed that Elon Musk had not proven his financing. The regulator then forced him to step down as chairman of Tesla’s board of directors, pay a $20 million fine, and later required his tweets directly related to Tesla’s activities to be pre-approved by a competent attorney. Elon Musk, who is currently trying to buy Twitter, challenged the latest move in court in early March.