The tweet sent by Elon Musk in August 2018 about the delisting of electric car maker Tesla was the “complete truth”. According to a statement that Musk’s lawyers have filed with the court in a case brought by investors against the multi-billionaire.
They believe that Musk committed fraud with the tweet.
The documents also state that Musk was considering taking Tesla off the stock market for $420 a share and that the financing was secured. “There was support from investors.” Musk’s tweet caused significant price movements for Tesla, and the US stock watchdog SEC accused him of fraud. Musk and Tesla reached a $40 million settlement with the SEC, and he stepped down as chairman of the company for a three-year term.
According to court papers, Musk had financial backing from the Saudi sovereign wealth fund in delisting Tesla. However, a few weeks after sending the Twitter message, the CEO announced that Tesla would continue to be listed on Wall Street.
A group of investors has sued Musk and Tesla because the tweet allegedly caused billions of dollars in damage. In addition, they have called Musk’s tweets false and misleading. A lawsuit should begin in May in San Francisco.