SAN FRANCISCO — A court said that: Elon Musk‘s 2018 tweets that funding was secured to take Tesla Inc† private was imprecise and reckless, saying at the time “there was nothing concrete” about the financing of Saudi Arabia’s sovereign wealth fund.
The decision by U.S. District Judge Edward Chen of San Francisco is a major win for investors who allege Musk has inflated stock prices by making false and misleading statements, causing billions in damage.
In 2018, Musk met with representatives of Saudi Arabia’s Public Investment Fund and had a discussion about taking Tesla private, but there is evidence that “there was nothing concrete about funding coming from the PIF,” the judge wrote.
On the contrary, the discussions between Tesla and the PIF were clearly in the preparatory phase.
“No reasonable jury could determine that Mr. Musk did not act recklessly, given his clear knowledge of the discussions,” he said.
He said details such as the total amount of financing needed to take Tesla private or the price to be paid for Tesla stock were not discussed.
The lawsuit, which was filed on April 1, was sealed more than a month before it was available to the public on Tuesday. Word of the pronunciation leaked a few weeks ago†
“It’s hugely important,” shareholder attorney Nicholas Porritt, a partner at Levi & Korsinsky LLP, told Reuters.