The SEC found Elon "Pedo Guy" Musk guilty of fraud and knowingly publishing a Tweet claiming he would take TSLA private at $420 per share. Now a civil trial begins, by shareholders seeking damages, claiming they relied on Musk's Tweet to make a losing financial bet.
Regardless of the trial's outcome, Musk's reputation as an impulsive, under-informed, and unreliable source has been cemented.
NPR:
The trial stems from a class-action lawsuit brought by investors who owned Tesla stock during a 10-day period (Aug. 7-17) that began the same day as Musk's tweets.
District Judge Edward Chen has already ruled that Musk's initial tweets were knowingly false and misleading. A jury will now decide whether Musk acted recklessly by posting them, as well as whether he caused financial harm to Tesla shareholders.
Tesla's stock prices swung by roughly $14 billion during the 10-day period covered in the lawsuit, the shareholders say.
