Elon Musk finally begins a lengthy trial whose origin dates back to an “innocent” Twitter post about Tesla Motors that actually represented millions in losses for many people and violated some laws.
How did the subject behind SpaceX and the world’s most famous electric automotive company got into this legal mess that could further dynamite its fortune? The story is as absurd as it is necessary to review to understand the magnitude of his actions.
In recent months we have witnessed the true administrative and leadership qualities of Elon Musk after taking full control of Twitter, in an event that is already spiraling out of control towards the collapse of this social network.
The supposedly richest man in the world would have immediate liquidity problems in his thinning wallet, since the majority of his fortune is based on assets and not money.
So that Elon Musk already has a legal claim for not paying the rent of one of his corporate offices and even the employees of the platform complain that there is not even toilet paper in the bathrooms.
All while Tesla’s shares have gone into free fall because of the subject himself. And it is precisely in this present context that he initiates a trial for a serious slip committed 5 years ago.
Why Elon Musk is on trial for Tesla and a 2018 tweet
At the time we reported how in August 2018 Elon Musk used his account Twitterin the apparent middle of a heavy drug session, to post a joke about Tesla Motors.
Where the executive announced that he already had the “insured” funds to turn Tesla into a private company. So each action would have for him a price of USD $420offering current investors the option to sell or keep their shares at that value:
This with the passing of the hours was revealed to be a joke around the figure of 420 and marijuana, which was a recurring issue in the occurrences published by Elon Musk within the blue bird social network a month after he had appeared in the joe rogan podcast smoking weed.
Even at that time Musk’s actions were already erratic enough enough for the rest of Tesla’s main investors to demand his removal from the executive board, which ended up happening.
But in itself, the publication of that 2018 tweet ended up causing millions in losses among company shareholders who decided to sell their shares and then recover them when it was found out that this was a joke, all with a wide difference in their value, which caused them many losses.
Doing the necessary math, Elon Musk’s tweet ended up indirectly valuing Tesla Motors at $72 billion. Which ended up being a fiasco, a lie, and also a bad drug joke.
So those affected started a legal action against Musk whose trial is about to start. With the background that already before the US Securities and Exchange Commission (SEC) prosecuted the subject for fraud.
At the time, the authority imposed a fine of USD $20 million and the imposition of not being president of the board of directors of Tesla Motors for a minimum period of 3 years.
So it remains in doubt what the conclusion of this new process could be.