Tesla Stock (NASDAQ:TSLA)
Elon Musk’s tweets claiming that he had “funding secured” to take Tesla (NASDAQ:TSLA) private in 2018 are the subject of a current legal proceeding. Jury selection in that proceeding has now been completed. In a legal battle that is expected to run for around one week and a day and a half, the opening statements will be presented in front of a panel of nine jurors on Wednesday.
According to the allegations made in the class action lawsuit, investors sustained significant monetary losses due to the volatile behavior of Tesla stock in reaction to the tweets. The question of whether or not Musk intentionally and substantially deceived investors, as well as whether or not the investors are entitled to any damages, will be decided by the jury (that could total in the millions, or possibly billions, of dollars).
Musk and Tesla (NASDAQ:TSLA) have previously paid a combined $40 million each to resolve legal action brought on by the SEC. Additionally, Musk was compelled to quit as the chairman of the electric vehicle manufacturer, but he maintained his post as CEO. Musk contends that his tweets were based on conversations he had with Saudi Arabia’s Public Investment Fund and what he perceived as a contract to take the business public.
Even though the company was in further trouble, Tesla stock was the top performer in the S&P 500 Index on Tuesday, with a 7.4% increase in price. The release of positive statistics on car registrations in China helped China draw in some new consumers after price concessions were implemented in the area. The development took place despite the testimony of a Tesla (NASDAQ:TSLA) engineer who said that the film of the self-driving car from 2016 was fabricated.
Featured Image: Pexels @ Chad Russell