Elon Musk When Tesla Inc.A case alleging that the company’s shareholders were deceived by Musk’s 2018 statement that funds to take the electric car maker private were “secured” is set to go to trial in San Francisco on Tuesday.
The lawsuit seeks damages from shareholders who bought and sold Tesla shares days after Musk’s Aug. 7, 2018 tweet. Closed bidding was “far from safe”.
Shareholders did not disclose the amount of damages, but said Mr. Musk’s tweet cost investors “billions” in damages.
The defendants, including seven current and former Tesla directors, deny any wrongdoing.
Opening debates could begin later Tuesday after jurors are selected. Potential panelists were asked beforehand about their opinions on Musk and whether they own a Tesla car.
Musk argued that too many potential jurors were biased against him because of local media’s negative coverage of the layoffs on Twitter he took over in October. It asked U.S. District Judge Edward Chen to move the case to Texas.