Elon Musk’s 2018 Tweet Slip‑Up: Judge Calls It Reckless
In a decisive blow to Musk’s stock‑market swagger, a San Francisco judge ruled that his 2018 tweets claiming a serious money‑backing deal with Saudi Arabia’s sovereign wealth fund were nothing more than hype. The court described the alleged funding as “nothing concrete,” and slammed the comments as reckless.
What the Judge Said
- No firm commitment. The judge said the Saudi bid was in the pre‑flight phase—no concrete proof of funding came through.
- Petty details were missing. No talk of how much money was needed or how much Musk would have to pay to take Tesla private.
- Musk knew it was sketchy. “Given his clear knowledge of the discussions, no reasonable jury could find he didn’t act recklessly,” the judge wrote.
The Big Picture
On April 1, a summary judgment sealed the decision for over a month before it finally went public on May 10. The move is a major win for investors who say Musk’s bluster nudged Tesla’s stock higher at the cost of billions.
Shareholder attorney Nicholas Porritt told Reuters that “the heart of the class action now is a summary judgment on falsity and scienter—before rushing to the jurors that January.” However, the judge did not grant shareholders a judgment that the false statements actually impacted Tesla’s share price.
Current Status
- Investors still need to determine the damages caused by the misinformation.
- Musk’s lawyer is filing motions to reverse the ruling.
- Musk, in press releases, insists the funding was secured back in 2018.
What It Means for the Rest of the Industry
The ruling aligns with a prior SEC lawsuit accusing Musk of fraud over the same tweets. In 2021, Musk settled: he stepped down as Tesla chairman, paid fines, and agreed to have a lawyer vet his tweets before they hit the timeline.
In short, the “take Tesla private” dream remains more of a comic book than a reality—at least for now.
