At present, any edition Elon Musk on Twitter it becomes news. However, the mogul doesn’t care if his tweets will have serious consequences. For him, everything is laughter and fun, but the regulators still do not find him funny, especially when his messages are able to change the behavior of the company in the stock market for better or worse.
In fact, during the trial of Elon Musk for his possible market manipulation, his tweets became the center of discussion. Authorities believe that his publications, such as the one in which he assured that funding for Tesla’s privatization has been secured, could provoke unusual market behavior. This is quite worrying, especially since we are talking about the money of many investors.
Nevertheless, Elon Musk Tried to Downplay His Twitter Posts. In fact, he hinted that they had no effect. In addition, he believes that people, at least in relation to the financial issue, do not respond to his tweets (via New York Times).
“It’s hard to say that the share price is related to the tweet. Just because I tweet something doesn’t mean people will believe it or act on it.”
Elon Musk.
The event that led to the trial of Elon Musk
However, his words are far from what is actually happening. In 2018, Elon Musk shared a tweet that caused quite a stir and confusion shortly thereafter: “I am considering going public with Tesla at $420. Secured funding. Within minutes, the share price of the electric car maker skyrocketed.
The reality check came right away. It was clear that his idea had no real chance of becoming a reality. US regulators, for their part, warned that the situation would not go unnoticed. The consequence was immediate: Tesla’s share price plummeted.
SEC (Securities and Exchange Commission) sued Elon Musk for causing Tesla stock volatility through the publication of misleading information. The businessman called the lawsuit “unjustified” and said he acted in favor of “truth, transparency and the interests of investors.”
Although at first there were really serious consequences, including his indefinite departure from Tesla, in the end, Elon Musk and the SEC came to an agreement. The tycoon agreed to pay a $20 million fine and, in addition, step down as president of the company’s board for three years.
However, this did not stop some affected by the volatility take their own lawsuits claiming the millionaire’s compensation. That is why the trial began this week with Elon Musk as the main defendant.
Even though the tycoon usually conveys a lot of calmness, this time seems to be a little worried. Since the trial is taking place in California, he believes that the mass layoff of Twitter employees, ordered by him after he became the owner, could affect the jury’s decision.
Source: Hiper Textual
