Bea Beltran Tech 01.20.2023 23:Jan PM EST

Elon Musk's Tweeting Habits Targeted by Tesla Investors at Trial

Twitter is a starting ground for controversy, but no one does it better than its owner, Elon Musk. Almost all of his tweets generate some kind of intense reaction from their viewers and they often have a negative impact. Musk himself said that he won't be stopping anytime soon.

$44 Billion for Freedom of Speech

Musk is a known advocate for free speech and that has been highlighted enough based on his tweeting habits alone. This, however, has caused many problems for the tech billionaire, including anyone tied to the companies he handles.

One tweet, in particular, is getting all the heat. It was the post back in 2018, where he stated that he is taking Tesla private at $420 per share and that the funding was secured. As mentioned in The Verge, Tesla investors claimed that it cost them millions of dollars.

Many have tried to tell the tech mogul to stop, particularly Antonio Gracias, a former member of Tesla's board of directors, and investors like Ron Baron and Sam Teller. Obviously, he ignored the advice and pleas of his associates, which resulted in Tesla investors filing a lawsuit.

Even as Musk was about to take the stand, he tweeted just seven minutes before, and then again 45 minutes after. This could attest to the statement against him saying that he was a reckless tweeter.

The plaintiffs in his securities fraud trial plan to paint Musk as someone who is detrimental to his own companies, and that his tweets are making a significant impact on Tesla's stock price and his shareholders.

In Musk's testimony, he mentioned that he cares about his retail investors as they were loyal and steadfast. Although, he also expressed his contempt against short sellers who bet against his company, saying that they steal money from small investors which is not good.

Guhan Subramanian, a professor from Harvard Business School served as the expert witness for the plaintiffs. He mentioned that the communication of material non-public information about a managed buyout through tweets was unusual.

Either way, anything he's said on the stand or tweets from here on out could be brought up once the trial continued next Monday.

The Harm of Elon Musk's Tweets

The Tesla investors aren't exactly wrong in their claims. There have already been instances when Musk's tweets have caused trouble like when he attacked Dr. Anthony Fauci by tweeting that his pronouns were "Prosecute/Fauci."

Tesla buyers backed out of their orders and said that it was due to Musk's remarks, according to CNET. A Tesla salesperson attested to the fact that customers canceled their orders due to the Tesla CEO's erratic behavior on his platform.

Then there was the loss of advertisers on Twitter because tweets were poorly moderated after Elon Musk fired many of his staff. Instead of trying to make amends, Musk responded to the exits saying that "thermonuclear name & shame" would happen if it continues.