A California jury has ruled that Elon Musk is not liable for losses experienced by Tesla shareholders following his controversial 'funding secured' tweet from 2018.
The unanimous verdict, announced Friday in U.S. District Court, ends a three-week long trial over a class-action shareholder lawsuit regarding the tweet, in which the billionaire said that he was thinking about taking Tesla private for $420 a share and had "funding secured." Those two words resulted in the CEO having to forfeit his position as Tesla's executive chairman and pay millions of dollars in fines and legal fees.
However, the jury ruled that plaintiffs failed to prove any of their four claims against Musk and the other defendants. A turn from losses to profits about a year after the tweet started Tesla shares on an extraordinary run, gaining 1520% from the day of the tweet to its record high in November 2021. That record close of $409.97 works out to $6,150 a share, when adjusted for the two stock splits since that day. Even with the 70% decline in Tesla shares from that all-time high to Friday's close, shares are still up 384% since the close on the day of the 2018 tweet.
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