The latest verdict pronounced by a federal court in San Francisco clears Musk of any securities law violation, and as such, he is no longer liable to pay billions of dollars in damages to plaintiffs. The shareholders had originally accused Musk of causing them steep financial losses over rushed sales in the days following his tweet which caused massive fluctuations in Tesla’s stock value. Following his victory, Musk tweeted that “the wisdom of the people has prevailed!”
Thank goodness, the wisdom of the people has prevailed!
I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.
— Elon Musk (@elonmusk) February 3, 2023
Musk had previously told the court that he was in talks with the Saudi sovereign wealth fund over a considerable investment that would allow him to take Tesla private. However, Musk abandoned those plans just over a week later without publicly disclosing why. During the court proceedings, Musk revealed that his potential backer(s) reneged on their commitment. The commitment was only verbal, and Musk didn’t get anything in writing, according to a report from Bloomberg.
Musk was reportedly willing to offload his personal stake in SpaceX to support his strategy of taking Tesla private, but those plans never actually materialized. On the contrary, Musk has relied on billions-worth of his Tesla shares to fund his $44 billion purchase in the past few months, with Twitter suffering financially following an advertiser exodus and several botched product decisions.
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