Elon Musk's "fund secured" Tesla tweet is now considered inaccurate and reckless by a U.S. court. Based on the latest findings, the giant automaker wasn't about to secure financing from Saudi Arabia's sovereign wealth fund in 2018.
Because of this, U.S. District Judge Edward Chen of San Francisco concluded that the billionaire used false and misleading statements to increase the stock prices of Tesla.
"Rather, discussions between Tesla and the PIF were clearly at the preliminary stage. No reasonable jury could find that Mr. Musk did not act recklessly given his clear knowledge of the discussions," said Chen via Reuters' latest report.
Elon Musk's 'Funding Secured' Tesla Tweet is Inaccurate
For investors, the latest findings of the San Francisco U.S. court are a major victory. This means that the giant automaker can be fined, with affected individuals receiving compensation.
However, this is still uncertain since the amount of damage caused by the false statements of Musk is still not yet confirmed.
Edward Chen refused to provide the summary judgment to the shareholders. On the other hand, he also decided not to disclose if the fake funding announcements of Tesla in 2018 affected the share prices of the giant EV maker.
As of writing, the billionaire's lawyers are trying to change the final decision of the San Francisco court. But, they haven't shared many details regarding the ongoing case.
If you want to see further details about the issue of Tesla's 2018 funding statements, you can visit this link.
Other Issues Faced by Elon Musk
Aside from the 2018 Tesla funding issue, Musk is also facing another lawsuit filed by shareholders against his billion-dollar Twitter purchase, as reported by CNN Business.
In the latest complaint, the Orlando Police Pension Fund claims that the billionaire can't actually have his Twitter takeover until 2025.
Officials further explained that under Delaware law, Musk couldn't purchase the social media platform if two-thirds of the other shareholders don't approve of his acquisition.
Recently, it was revealed that Elon Musk's Twitter plans include a massive employee removal activity.
On the other hand, Elon Musk claims that the ESG assessments for Tesla are false.
For more news updates about Elon Musk and other tech topics related to him, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
