Tesla chief executive Elon Musk speaks beside a Tesla vehicle at a manufacturing facility in Austin, Texas. AP
Tesla chief executive Elon Musk speaks beside a Tesla vehicle at a manufacturing facility in Austin, Texas. AP
Tesla chief executive Elon Musk speaks beside a Tesla vehicle at a manufacturing facility in Austin, Texas. AP
Tesla chief executive Elon Musk speaks beside a Tesla vehicle at a manufacturing facility in Austin, Texas. AP

Why is Elon Musk being sued by Tesla shareholders?


Patrick deHahn
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Elon Musk is on trial in San Francisco, California, where investors are suing the Tesla chief executive for financial losses they suffered following some now infamous tweets.

What is the case about?

Mr Musk is accused of securities fraud for tweets he posted in 2018 in which he claimed he was preparing to take Tesla private through a $72 billion buyout.

“Am considering taking Tesla private at $420. Funding secured,” a tweet from August 7, 2018, reads.

He doubled down on the comment with follow-up comments that made a deal seem imminent, though no deal ever took place.

Investors - represented by Tesla investor Greg Littleton - who traded in the wake of the tweets accuse Mr Musk of misleading shareholders, leading them to lose millions of dollars during the ups and downs the stock experienced in the days following.

Are these cases common?

Many shareholders sue companies and individuals for securities fraud when they suffer losses.

However, accusations do not often make it to court, as most defendants settle or courts dismiss the cases, making this securities fraud trial relatively rare.

Nine members of a jury in San Francisco will decide if Mr Musk's Twitter posts led to increase Tesla's share price upon the news of funding for a private deal.

Will Mr Musk take the stand?

The former world's richest person is on the witness list for both sides in the trial and could take the stand, The Associated Press reported.

It is not the first time the billionaire has taken the stand, as he testified under oath during court proceedings about his Tesla pay package.

Elon Musk over the years — in pictures

  • Jared Kushner and Elon Musk watch the Fifa World Cup final match between Argentina and France. Getty Images
    Jared Kushner and Elon Musk watch the Fifa World Cup final match between Argentina and France. Getty Images
  • Mr Musk attends model and businesswoman Heidi Klum's 2022 Halloween party at Moxy Lower East Side, in New York City Getty
    Mr Musk attends model and businesswoman Heidi Klum's 2022 Halloween party at Moxy Lower East Side, in New York City Getty
  • Mr Musk on stage next to Optimus the humanoid robot in Palo Alto, California, in September 2022 AFP
    Mr Musk on stage next to Optimus the humanoid robot in Palo Alto, California, in September 2022 AFP
  • Mr Musk speaks at the Tesla Giga Texas manufacturing 'Cyber Rodeo' grand opening party, in Austin, Texas, in 2022 AFP
    Mr Musk speaks at the Tesla Giga Texas manufacturing 'Cyber Rodeo' grand opening party, in Austin, Texas, in 2022 AFP
  • Mr Musk shakes hands with Brazil's then president Jair Bolsonaro, at the event Conecta Amazonia in Porto Feliz, Sao Paulo state, in 2022 AFP
    Mr Musk shakes hands with Brazil's then president Jair Bolsonaro, at the event Conecta Amazonia in Porto Feliz, Sao Paulo state, in 2022 AFP
  • Mr Musk and his mother, Maye Musk, arrive for the 2022 Met Gala at the Metropolitan Museum of Art in New York, in 2022 AFP
    Mr Musk and his mother, Maye Musk, arrive for the 2022 Met Gala at the Metropolitan Museum of Art in New York, in 2022 AFP
  • Mr Musk attends the start of the production at Tesla's Gigafactory in Gruenheide, in 2022 AFP
    Mr Musk attends the start of the production at Tesla's Gigafactory in Gruenheide, in 2022 AFP
  • Mikey Day as a lawyer, Cecily Strong as a judge, and host Mr Musk as Wario during the 'Wario' sketch on NBC's 'Saturday Night Live', in 2021 Getty
    Mikey Day as a lawyer, Cecily Strong as a judge, and host Mr Musk as Wario during the 'Wario' sketch on NBC's 'Saturday Night Live', in 2021 Getty
  • Mr Musk and son X Æ A-12 onstage at 'Time' Person of the Year in New York, in 2021 AFP
    Mr Musk and son X Æ A-12 onstage at 'Time' Person of the Year in New York, in 2021 AFP
  • Mr Musk dancing onstage during a delivery event for Tesla's China-made Model 3 cars in Shanghai, in 2021 Reuters
    Mr Musk dancing onstage during a delivery event for Tesla's China-made Model 3 cars in Shanghai, in 2021 Reuters
  • Mr Musk with Armin Laschet, at the time CDU party federal chairman and prime minister of Germany's North Rhine-Westphalia, at the Tesla Gigafactory in Gruenheide, in 2021 Getty
    Mr Musk with Armin Laschet, at the time CDU party federal chairman and prime minister of Germany's North Rhine-Westphalia, at the Tesla Gigafactory in Gruenheide, in 2021 Getty
  • Mr Musk at the construction site of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, in 2020 EPA
    Mr Musk at the construction site of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, in 2020 EPA
  • Mr Musk leaves a New York court in 2019, after a hearing in a lawsuit brought against him by the US Securities and Exchange Commission Getty
    Mr Musk leaves a New York court in 2019, after a hearing in a lawsuit brought against him by the US Securities and Exchange Commission Getty
  • A prototype of SpaceX's Starship spacecraft in Boca Chica, Texas, in 2019 Reuters
    A prototype of SpaceX's Starship spacecraft in Boca Chica, Texas, in 2019 Reuters
  • Mr Musk and then partner Grimes at The Metropolitan Museum of Art in New York City, in 2018 AFP
    Mr Musk and then partner Grimes at The Metropolitan Museum of Art in New York City, in 2018 AFP
  • From left, Mr Musk, Corning chief executive Wendell Weeks, then US president Donald Trump and Johnson & Johnson chief executive Alex Gorsky at the White House, in 2017 AFP
    From left, Mr Musk, Corning chief executive Wendell Weeks, then US president Donald Trump and Johnson & Johnson chief executive Alex Gorsky at the White House, in 2017 AFP
  • Mr Musk presents his plan to colonise Mars at the International Astronautics Congress in Guadalajara, Mexico, in 2016 EPA
    Mr Musk presents his plan to colonise Mars at the International Astronautics Congress in Guadalajara, Mexico, in 2016 EPA
  • Mr Musk with then Japanese prime minister Shinzo Abe after a test drive of the Tesla Model S P85D in Palo Alto, California, in 2015 Reuters
    Mr Musk with then Japanese prime minister Shinzo Abe after a test drive of the Tesla Model S P85D in Palo Alto, California, in 2015 Reuters
  • Mr Musk with then wife Talulah Riley at the 2011 British Academy Film Awards in London Getty
    Mr Musk with then wife Talulah Riley at the 2011 British Academy Film Awards in London Getty
  • Mr Musk after Tesla's initial public offering at the Nasdaq market in New York, in 2010 Reuters
    Mr Musk after Tesla's initial public offering at the Nasdaq market in New York, in 2010 Reuters
  • Then US president Barack Obama with Mr Musk on a tour of Cape Canaveral Air Force Station at Cape Canaveral, Florida, in 2010 Reuters
    Then US president Barack Obama with Mr Musk on a tour of Cape Canaveral Air Force Station at Cape Canaveral, Florida, in 2010 Reuters
  • Mr Musk in the Tesla Roadster electric car at the North American International Auto Show in Detroit, in 2009 Reuters
    Mr Musk in the Tesla Roadster electric car at the North American International Auto Show in Detroit, in 2009 Reuters
  • Mr Musk with music producer Quincy Jones at the Tesla Roadster launch party in 2008 AFP
    Mr Musk with music producer Quincy Jones at the Tesla Roadster launch party in 2008 AFP
  • Mr Musk answers questions about the new Tesla Model S all-electric car, at its unveiling in Hawthorne, California, in 2009 AFP
    Mr Musk answers questions about the new Tesla Model S all-electric car, at its unveiling in Hawthorne, California, in 2009 AFP
  • Elon Musk in Los Angeles in 2008. Getty
    Elon Musk in Los Angeles in 2008. Getty
  • Tesla and SpaceX founder Elon Musk in 2004 Getty
    Tesla and SpaceX founder Elon Musk in 2004 Getty
The specs: 2017 Porsche 718 Cayman

Price, base / as tested Dh222,500 / Dh296,870

Engine 2.0L, flat four-cylinder

Transmission Seven-speed PDK

Power 300hp @ 6,500rpm

Torque 380hp @ 1,950rpm

Fuel economy, combined 6.9L / 100km

Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20HyveGeo%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Abdulaziz%20bin%20Redha%2C%20Dr%20Samsurin%20Welch%2C%20Eva%20Morales%20and%20Dr%20Harjit%20Singh%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ECambridge%20and%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%208%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3ESustainability%20%26amp%3B%20Environment%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%24200%2C000%20plus%20undisclosed%20grant%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVenture%20capital%20and%20government%3C%2Fp%3E%0A
How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

RESULT

Norway 1 Spain 1
Norway: King (90 4')
Spain: Niguez (47')

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

At Everton Appearances: 77; Goals: 17

At Manchester United Appearances: 559; Goals: 253

Updated: January 19, 2023, 3:06 AM