The case dates back to August 2018, when Elon Musk tweeted that he wanted to take Tesla out of the stock market, then that he had the necessary funding to do so. His messages had caused the stock to swing sharply for a few days.
“Plaintiffs allege that these tweets were factually false and artificially affected Tesla’s stock price and other securities,” Judge Edward Chen summed up for potential jurors.
On Friday, the magistrate refused to transfer the proceedings to Texas, the American state where Elon Musk moved Tesla’s headquarters.
The defense argued that the multi-billionaire might not benefit from an impartial trial in San Francisco, where he bought Twitter in late October, and was widely criticized for his decisions, from the platform’s content moderation policy to mass layoffs.
Three weeks of trial
“In recent months, the local media has saturated this district with biased and negative articles regarding Elon Musk,” the lawyers said in a motion.
“The local press, contrary to its usual way of covering (the social plans), personally blamed Elon Musk for the job cuts and even accused him of breaking the law. Local elected officials, including the mayor of San Francisco, participated in protests once morest him,” they continued.
Edward Chen, on the contrary, estimated on Friday that an impartial jury might be constituted in the Californian city. The trial is scheduled to last three weeks, and Elon Musk is on the witness list.
