In the case of alleged manipulation of Tesla stock prices, Elon Musk appeared in court today in California.
We are in 2018 and Elon Musk is announcing that he has enough funds to buy back Tesla shares to take the company off the stock market. His simple statement is enough to push Tesla’s stock price up. Elon Musk, who at the time had so-called “short sellers” investors on his radar, did well: the rise in price punished these investors, who were Musk’s enemies, who sometimes bet big on the down. Tesla shares. But the American stock market cop, the SEC, saw it as a form of price manipulation by Elon Musk. An agreement was then reached with the SEC to avoid legal action: Elon Musk had to leave the Tesla board of directors. A case that’s not over as 5 years later, the freaky boss is on trial!
Trial of Elon Musk in California
I am considering privatizing Tesla at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
The lawsuit is based on the fact that Tesla shares would not have traded in such a wide range if Musk hadn’t put off the prospect of buying the company at $420 a share. According to the judge, a false and impossible atonement. Since then, Tesla shares have split twice, bringing the $420 price to $28 on an adjusted basis. The stock closed last week at $122.40 from a November 2021 peak of over $414.
First of all, the court will provide an opportunity to learn more about the management methods of the businessman, who also heads SpaceX. And on the list of witnesses are the likes of Oracle co-founder Larry Ellison and James Murdoch, son of tycoon Rupert Murdoch. Elon Musk’s brother could also be present.
For his part, Elon Musk asked the judge to move the trial to Texas, not far from Tesla’s new headquarters, arguing that the trial would be biased if it took place in California (where it would have more detractors). But the judge refused, justifying himself by the fact that Tesla was very popular in California.