Elon Musk, chief Executive officer of Tesla Inc, “lied” at the time of funding when he said that was secured if they bought the company share.
The lawyer gives these statements on behalf of Tesla investors on Wednesday. In the response, Elon Musk’s attorney said that he merely used the wrong words when he informed about shares in the year 2018.
Glen Littleton, a Tesla investor, now blames damages on shareholders who bought the company’s stock at that time; when Musk posted his plan on Twitter that the become the company private in 2018.
Source: Automotive News
Due to Musk’s “lie”, many people lose their millions, said Nicholas Porritt, a primary attorney from the investor’s side, told the jury in San Franciso in his opening statements.
In the response, Musk’s lawyer said, “Musk was very serious at that time about taking their company private, but this did not happen due to shareholder opposition.
Further, Alex Spiro added, “Very soon you will know that it was not fraud or something else; still musk believed that financing is not only the issue and we are still working to make things better.”
Spiro said, “we know that the older tweet contained some “technical inaccuracies”, and Musk was also very concerned about this incident.
Some investors knew about the go-private plan, and they wanted that every shareholder knows this whole plan while trying to protect our plans; in a hurry, he used the wrong words that time”.
This case has become a “rare securities class action trial”. Now musk and his company are trying to settle all the claims to clear all the hurdles. For now, the judges are trying to find whether these tweets are artificially inflated or pre-planned.
Source: Bloomberg.com
Spiro said that the defendants also include the former and current Tesla directors who had motives in their response to Musk’s plan. The trial will resume on Friday with an expert witness and might include Musk in the court.
According to Littleton, he had started investing in Tesla in 2015, and at that time, musk was bringing new ideas to the technology industry. Some other investors said that they view Musk’s tweet as “funding secured” and find that time company stock suitable for this.
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