Court finds Musk’s 2018 ‘funding secured’ tweet reckless

A court has ruled that Elon Musk’s 2018 tweets that funding was secured to take Tesla private was inaccurate and reckless.

The court said that “there was nothing concrete” about financing from Saudi Arabia’s sovereign wealth fund at that time.

The San Francisco court decision is a victory for investors alleging that Musk made false and misleading statements to inflated stock prices.

The court found that though Musk met with representatives of Saudi Arabia’s Public Investment Fund ,“there was nothing concrete about funding coming from the PIF.”

“Rather, discussions between Tesla and the PIF were clearly at the preliminary stage.”

The summary judgment, made on April 1, was sealed for more than a month before it was publicly available on Tuesday.

The court refused to grant shareholders summary judgment on the question of whether or not the allegedly false statements actually impacted Tesla’s share prices.

The latest ruling was in line with a complaint from the U.S. security regulator which sued Musk for fraud charges for the tweets in 2018.