Court Affirms Ruling for Elon Musk in Investor Lawsuit

A federal appeals court upheld a jury's ruling that Elon Musk is not liable for misleading investors with his 2018 tweet claiming 'funding secured' to take Tesla private. The 9th U.S. Circuit Court of Appeals rejected the investors' request for a new trial, determining that they failed to prove Musk acted with intent to mislead. While acknowledging that Musk's tweet was reckless, the court stated that the jury correctly evaluated whether his statements significantly affected investor decisions. The investors had initially claimed they suffered billions in losses after the stock price fell following the revelation that Musk would not proceed with privatization. This case follows a previous settlement with the SEC, where Musk and Tesla agreed to pay $40 million without admitting wrongdoing. The appellate court's decision effectively ends the case, reinforcing legal standards around corporate communications and investor trust.