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Elon Musk is sued for FRAUD by Tesla shareholders

Jury selection is underway in a trial brought by Tesla shareholders in San Francisco. The shareholders are suing Elon Musk for fraud, claiming that a tweet he sent in 2018 cost them billions of dollars. The tweet in August 2018 stated that he was considering taking Tesla private and that he had secured the funding necessary to do so. This caused the stock price to soar, only to plummet 10 days later when it became clear that he had not secured the funding. The investors are seeking damages and allege share price manipulation and fraud.

Elon Musk is claiming that he did meet with a Saudi investor who could have provided the funding, but is facing an uphill battle. The judge has ruled that the tweets were “reckless and untrue”, and has denied an application by Elon Musk’s lawyers to have the case transferred to Texas on the grounds that Elon Musk is a resident of California.

The outcome of this case will be closely watched, as it could have a significant impact on the future of Tesla and the reputation of Elon Musk.

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