— has proven unpopular among Tesla’s current stockholders, who are worried he has been devoting less time steering the automaker at a time of intensifying competition. Those concerns contributed to a 65% percent decline in Tesla’s stock last year that wiped out more than $700 billion in shareholder wealth — far more than the $14 billion swing in fortune that occurred between the company’s high and low stock prices during the Aug. 7-17, 2018 period covered in the class-action lawsuit.
The lawsuit is based on the premise that Tesla’s shares wouldn’t have traded at such a wide range if Musk hadn’t dangled the prospect of buying the company for $420 per share. Tesla’s stock has split twice since then, making that $420 price worth $28 on adjusted basis now. The shares closed last week at $122.40, down from its November 2021 split-adjusted peak of $414.50.
After Musk dropped the idea of a Tesla buyout, the company overcame a production problem, resulting in a rapid upturn in car sales that caused its stock to soar and minted Musk as the world’s richest person until he bought Twitter. Musk dropped from the top spot on the wealth list after the stock market’s backlash to his handling of Twitter.
The trial is likely to provide insights into Musk’s management style, given the witness list includes some of Tesla’s current and former top executives and board members, including luminaries such as Larry Ellison, Oracle co-founder, as well as James Murdoch, the son of media mogul Rupert Murdoch. The drama also may shed light on Musk’s relationship with his brother, Kimbal, who is also on the list of potential witnesses who may be called during a trial scheduled to continue through Feb. 1.
Source: Law Daily Report (lawdailyreport.net)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk denied bid to move Tesla tweet trial to Texas, federal judge rulesA federal judge has ruled that Elon Musk cannot move a trial over a misleading tweet from California to Texas, the home of Tesla, where he remains CEO. Sounds like that federal jerk wants to guarantee bias. Sounds like the judge just guaranteed an appeal now if elonmusk loses in California. I don't know if it'll be a fair trial but should be fun to watch. Judge was incorrect about getting a fair trial in San Francisco. It’s like trying a J6 political prisoner in DC and expecting a fair trail. Change of venues should simply be granted in good faith that the defendant know who their “peers” are for fairness to prevail. elonmusk
Source: FoxBusiness - 🏆 458. / 53 Read more »
Elon Musk's next drama: a trial over his tweets about TeslaSAN FRANCISCO (AP) — While still grappling with the fallout from a company he did take private, beleaguered billionaire Elon Musk is now facing a trial over a company he didn't. Long before Musk purchased Twitter for $44 billion in October, he had set his sights on Tesla, the electric automaker where he continues to serve as CEO and from which he derives most of his wealth and fame. Surprised he didn't say '69 Billion and 420 million dollars' because he's an edgy meme lord. Really enjoying him floundering away. What a fraud Will Musk tweet in jail? His actions are unforced errors and his words are often reprehensible.
Source: AP - 🏆 728. / 51 Read more »
Elon Musk’s next drama: A trial over his tweets about TeslaWhile still grappling with the fallout from a company he did take private, beleaguered billionaire Elon Musk is now facing a trial over a company he didn’t.
Source: WashTimes - 🏆 235. / 63 Read more »
Elon Musk's next drama: a trial over his tweets about TeslaLong before beleaguered billionaire Elon Musk purchased Twitter in October, he had set his sights on Tesla, the electric automaker where he serves as CEO and from which he derives most of his wealth and fame. elonmusk tesla kprc2 click2houston
Source: KPRC2 - 🏆 80. / 68 Read more »
Elon Musk's next drama: A trial over his tweets about TeslaElon Musk claimed in a 2018 tweet that he lined up the financing to pay for a $72-billion buyout of Tesla, which he then amplified with a follow-up statement. But the buyout never materialized, and now he has to explain his actions in a federal court. “I decided I didn’t want to” -Elon Gripping journalism, folks. ReignOfApril Good thief the SEC has no balls, and he has no explanation except that he can't handle his weed. elmo is a light weight
Source: latimes - 🏆 11. / 82 Read more »