Fall promises to be busy for Elon Musk.
The visionary boss of Tesla (TSLA) – Get the report from Tesla Inc. will be active on all fronts with huge stakes every time.
From the end of September, Musk will do everything possible not to disappoint fans of the electric vehicle manufacturer during the second edition of the Tesla AI (Artificial Intelligence) day. He moved the event from August 19 to September 30, as he intends to present a humanoid robot that is almost ready for commercialization.
“Tesla AI Day has been pushed back to September 30 as we may have a working Optimus prototype by then,” the billionaire tweeted to his 102 million followers on June 2.
The Twitter Trial
With that test passed, Musk begins a perilous month with potential repercussions for Tesla. In October, the trial on Twitter is scheduled. Musk withdrew his bid to acquire the microblogging website for $44 billion earlier this month, sparking a massive legal battle.
After three turbulent months, marked by public drama, the entrepreneur threw in the towel accusing Twitter of bad faith on the number of fake accounts, or spam bots, existing on the platform. Yet one of the reasons Musk gave when he announced his offer on April 14 was to tackle the issue of fake accounts.
The social media platform filed a lawsuit in Delaware Chancery Court, asking the judge to force Musk to fulfill his pledge to acquire the company. Twitter had requested an expedited trial, scheduled for mid-September. Musk asked the court to set February 13, 2023 as the first trial date.
Chancellor Kathaleen McCormick handed Twitter the first major victory. In a July 19 conference call, McCormick ruled for an expedited hearing, which will take place over five days in October. Twitter has argued that it wants an expedited trial because the merger agreement between the two parties provides that if the deal is not finalized by October 24, either party can put an end to it. end free of charge.
Besides Twitter, Musk now also has another legal deadline, starting October 3. A settlement conference is scheduled for that date in a lawsuit filed in California by investors who say they suffered losses because of tweets posted by the billionaire in August 2018 saying he was planning to private Tesla.
Settlement talks in 2018 Tweets case
“You are hereby notified that a settlement conference is scheduled for October 3, 2022 at 10:00 a.m. Pacific Time to be held via Zoom video conference,” said court documentsupdated July 22, addressed to Musk’s plaintiffs and attorneys and accessed by TheStreet.
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The judge also asks the two parties to talk to each other beforehand in order to improve the prospects for a settlement. They are to discuss six points, including who will attend the conference on each party’s behalf, which persons or entities must approve a proposed settlement agreement, and whether it would be helpful for settlement demands and/or offers to be made. before the settlement conference. summoned.
“No later than fourteen (14) calendar days prior to the settlement conference and prior to the preparation of their exchanged settlement conference statements and confidential settlement letters, counsel for the parties shall meet and confer (in person or by telephone) to discuss matters relevant to improving the chances that settlement negotiations will be productive,” the documents state.
Alex Spiro, one of Musk’s attorneys at the Quinn Emanuel law firm, told TheStreet that this settlement conference was a request from the court.
This latest development, however, suggests that there has been significant progress in this case, which builds on the now infamous tweet sent on August 7, 2018 by the CEO. That day, Musk had written that he wanted to take Tesla off the stock exchange at a price of $420 per share. Above all, he added that he had secured the financing of such an operation.
“I’m considering privatizing Tesla at $420. Funding secured,” Musk wrote.
The Securities and Exchange Commission (SEC) opened an investigation that resulted in a settlement in September 2018. Under the deal, Musk would step down as chairman of Tesla’s board of directors, pay a $20 million fine dollars and Tesla would also pay a $20 million fine. sadness. Tesla has also pledged to pre-approve tweets from Musk that could potentially impact the stock.
Some shareholders have decided to sue Musk by grouping around a class action lawsuit, filed with the US District Court for the Northern District of California in San Francisco. They feel they were wronged by Musk’s tweet, and more importantly they claim that Musk lied when he said he had the funds to finance the transaction.
On April 15, California Judge Edward Chen ruled that Musk’s statements were false. The judge found that Musk acted with a “scientist,” meaning he knowingly misrepresented securing funding when he tweeted.
“Nothing will ever change the truth that Elon Musk was considering taking Tesla private and could have,” Spiro told TheStreet at the time. “All that’s left about half a decade later are random plaintiffs’ lawyers trying to make money and others trying to keep this truth from coming to light, to the detriment of freedom. of expression.”
A trial is scheduled for January if there is no agreement between the two parties.