Can Musk be held liable for his Twitter use and disclosures?

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Can Elon Musk Be Held Liable for His Twitter Use and Disclosures?

Elon Musk may be held liable for his use of Twitter and its impact on securities disclosure rules, as shareholders allege his 2018 tweets about taking Tesla private artificially inflated the company's share price. The trial is examining whether these statements, particularly the claim of "funding secured," violated US Securities and Exchange Commission regulations and caused financial losses to investors.
Board Members Testified Tweets Did Not Require Review

Independent Tesla directors James Murdoch and Ira Ehrenpreis testified that Elon Musk's August 7, 2018, tweets announcing a bid to take the company private did not need to be reviewed by the board. They stated that Musk sent the tweets in his individual capacity, and therefore, board vetting was not necessary. This testimony concluded the presentation of live witnesses in the ongoing trial.
Shareholders Allege Significant Financial Losses

Following Musk's August 7, 2018, tweet stating he had "funding secured" to take Tesla private at US$420 per share, the company's stock price surged. However, the buyout deal ultimately did not materialise, leading to a subsequent drop in stock value. Shareholders have sued, asserting they lost billions of dollars as a result of these fluctuations.
Musk's Testimony on Funding and Investor Agreements

Elon Musk himself testified that "funding was absolutely not an issue" for the proposed buyout. However, he also acknowledged that he did not possess binding agreements with investors that specified exact amounts for their contributions. This distinction is a key point for the jury to consider when determining if his statements were misleading.
Jury to Decide on Share Price Inflation and Damages

The trial is focused on whether Elon Musk's public statements about the potential buyout, disseminated through Twitter, artificially inflated Tesla's share price. The jury will be tasked with determining if such inflation occurred and, if so, to what extent. Closing arguments are scheduled, after which the jury is expected to begin deliberations.

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Can Musk be held liable for his Twitter use and disclosures?

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