- The case revolves around his 2018 tweet announcing his intention to take Tesla private.
- Mr. Musk is being sued by Tesla shareholders.
- Mr. Musk might be ordered to pay billions of dollars in damages.
Prospective jurors in a civil action against Elon Musk have voiced conflicting views of the Tesla leader, with some calling him smart and others suggesting he is “off his rocker”.
Mr. Musk is being sued by Tesla shareholders for allegedly manipulating the Tesla share price.
The case revolves around his 2018 tweet announcing his intention to take Tesla private.
Because of this position, US regulators ousted Mr. Musk as Tesla chairman.
On 7 August 2018, he tweeted that he had “funding secured” to take the carmaker private in what would be a $72bn (£58.7bn) buyout. No such deal went ahead.
Shareholders claim the tweet lost them billions of dollars after the stock price crashed.
The Tesla CEO, on the other hand, said that he thought he had secured finance from Saudi Arabia’s Investment Fund and thus did not commit securities fraud.
The case revolves around his 2018 tweet announcing his intention to take Tesla private.
Because of this position, US regulators ousted Mr. Musk as Tesla chairman.
“On a personal level, I think he’s a touch off his rocker,” one potential juror remarked on a form questioning if they could be impartial.
“I truly believe you can’t judge a person until you walk in their shoes,” said another possible juror, who added that Mr. Musk seemed “narcissistic”.
Another person said Mr. Musk had a “mercenary” demeanor since he’s “ready to take risks… that’s my view of him”.
Another termed him a “fast-rising business guy”, while yet another said he was a “clever, successful pioneer”.
Elon Musk trial
When the judge inquired if she would be biased against him, the woman replied, “A lot of individuals are not always likable people…. sometimes I don’t like my husband.”
A jury of nine members was eventually chosen, and opening arguments are scheduled to begin on Wednesday.
Mr. Musk had requested that the trial be transferred to Texas, claiming that a fair jury could not be found in San Francisco.
He said that major layoffs at Twitter, which he purchased last year, impacted many employees in the California city.
Mr. Musk’s lawyers contended that a significant majority of potential jurors had a negative opinion of the billionaire.
However, the judge said on Friday that the trial would take place in California.
If a jury in San Francisco judges in favor of the shareholders, Mr. Musk might be ordered to pay billions of dollars in damages.
He has already paid the Securities and Exchange Commission (SEC) $20 million for the tweet, and Tesla must pay a further $20 million.
His tweet has become famous in Silicon Valley, demonstrating the tremendous power of 140 characters on Twitter.
Legal experts believe Mr. Musk’s challenge will be tough to win, and that the punishment he paid to the SEC will be used against him in the case. Jury trials in cases of fraud, on the other hand, are notoriously difficult to predict.
Mr. Musk may be called to testify under oath in the case. Oracle CEO Larry Ellison and media magnate James Murdoch are among the witnesses.
It is projected to last approximately three weeks.
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