Updated Feb 4, 2023 - Economy

Elon Musk wins securities fraud case over 2018 tweet

Kia Kokalitcheva

A San Francisco jury on Friday found Elon Musk and Tesla not liable in a trial over a 2018 tweet in which Musk wrote that he had “funding secured” to take the electric carmaker private..

Why it matters: This is a victory for Musk, who has openly pushed back on the U.S. Securities and Exchange Commission's argument that he broke the law (and imposed a number of sanctions on him).

“Thank goodness, the wisdom of the people has prevailed,” Musk said.
“I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case,” he added.

The big picture: Musk has played fast and loose with his business-related tweets over the years — at times getting away with claiming they're just social media posts, and at times getting in trouble with the law.

Flashback: In August 2018, Musk tweeted that he had "funding secured" to take Tesla private at $420 a share.

Musk has since claimed (including during the trial in a San Francisco federal court) that he believed Saudi Arabia's sovereign wealth fund had committed to back the effort, and that more broadly securing capital wouldn't be a barrier in any case.
Still, investors sued him and Tesla for fraud, alleging that he knowingly or recklessly made the public claims, and cause them investment losses.

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Elon Musk wins securities fraud case over 2018 tweet

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