These few tweets Elon Musk can remember for longer. It’s about a lawsuit in which a billionaire is accused of manipulating Tesla’s share price. It could cost him billions of dollars from his already rapidly dwindling wealth, Bloomberg reported.
The trial over Musk’s four-and-a-half-year-old tweets will begin Tuesday in federal court in San Francisco. The billionaire wrote that he was considering buying Tesla shares and delisting the company from the stock exchange. He also announced that he intended to buy back shares from shareholders at $420 per share and that he had already secured $72 billion for this purpose, which was $13 billion more than they were worth at the time.
After this announcement, the company’s shares went up from $342 to $371 within a few days. The boom, however, did not last long, because after ten days, the concern’s shares fell below the price on the day the tweet was published. On August 24, Musk announced that Tesla would remain listed on the stock exchange.
The shareholders’ lawyers will try to show the jurors that Musk lied, which resulted in significant losses due to the sharp fluctuations in the stock price over a period of 10 days. In turn, Musk’s defense will try to present counterarguments that contradict this narrative, described Bloomberg.
According to Adam Pritchard, a professor at the University of Michigan Law School, losing a class action lawsuit of this size could expose Musk to billions of dollars in fines.
– Elon likes a good fight. He has a lot of money and is clearly willing to take big risks,” Pritchard said.
Musk’s fortune has shrunk
The agency reminded that the valuation of Musk’s wealth has recently decreased significantly compared to the peak in November 2021, when it reached $ 340 billion, and the eccentric billionaire became the first person in history who wealth has shrunk by more than $200 billion.
Last month Musk is no longer the richest man in the world, and one of the reasons was that Tesla shares fell 37 percent. from December 1 – the electric car maker faces increased competition and an impending recession, explained Bloomberg.
Elon Musk at the end of October 2022, he bought Twitter for the sum of USD 44 billion, incurring more than USD 10 billion for this purpose. debt. The billionaire introduced many changes in the functioning of the popular platform and company management, which resulted in, among others, outflow of advertisers, which are the company’s main source of income. There have also been major layoffs in the company.
Main photo source: Carina Johansen/EPA/PAP