Tech

Elon Musk lied about taking Tesla private: lawsuit

Elon Musk knowingly lied when he tweeted in 2018 that he was considering taking Tesla private, a judge reportedly ruled in a lawsuit by shareholders seeking billions in damages.

According to court documents, a judge agreed with shareholders’ claims that Musk knowingly misrepresented how he secured funding to take the electric-car maker private.

The filings were filed as part of an effort by shareholders to seek an injunction that would silence Musk and prevent him from commenting further on the matter. according to CNBC.

Musk, who has launched a hostile $41 billion takeover bid to buy Twitter, alluded to the case during an appearance Thursday at a TED conference in Vancouver, Canada, where he was addressing regulators of the Securities and Exchange Commission Exchange Commission called “bastards”.

“The SEC knew the funding was secure, but they were still conducting an active, public investigation at the time,” Musk said Thursday.

Elon Musk
Musk has been sued by Tesla shareholders after the stock’s value plummeted following his now-infamous tweet.
AFP via Getty Images

“Tesla was in a precarious financial situation. And I was told by the banks that if I didn’t agree to a settlement with the SEC, the banks would stop providing working capital and Tesla would go bankrupt immediately.”

Musk added, “So that’s like having a gun to your kid’s head. I was forced to illegally give in to the SEC.”

His August 2018 tweet sparked a social media firestorm — and a slap on the knuckles of federal agencies.

Elon Musk
Musk recently called the Securities and Exchange Commission regulators “bastards.”
AFP via Getty Images

“I’m considering taking Tesla private for $420. Funding secured,” Musk tweeted that day.

The SEC charged Musk with fraud for his tweet, resulting in $40 million in fines for Musk and his company, his resignation as Tesla chairman, and demands that his tweets be reviewed by company lawyers.

Tesla shareholders — whose shares rose about 13% in the wake of the tweet but then fell — filed a California class-action lawsuit. They’re asking for a summary judgment.

Musk’s attorney, Alex Spiro, told CNBC, “Nothing will ever change the truth, which is that Elon Musk considered taking Tesla privately and could have done it — all that remains about half a decade later are the attorneys for the.” Plaintiffs trying to make money and others trying to prevent this truth from coming out to the detriment of free speech.”

https://nypost.com/2022/04/18/elon-musk-lied-about-taking-tesla-private-lawsuit/ Elon Musk lied about taking Tesla private: lawsuit

JACLYN DIAZ

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