Key Insights:
- A U.S. appeals court upheld the jury’s decision, clearing Elon Musk and Tesla of liability over the 2018 “funding secured” tweet.
- Tesla shares jumped 15% post-Trump election victory, adding $15 billion to Musk’s fortune amid hopes for a business-friendly regulatory environment.
- Analysts expect reduced regulatory scrutiny for Musk’s ventures, including Tesla and SpaceX, under Trump’s incoming administration.
A U.S. appeals court has upheld a jury ruling that cleared Elon Musk and Tesla of liability over the CEO’s controversial 2018 “funding secured” tweet. The statement, which indicated that Musk had secured financial backing to take Tesla private at $420 per share, triggered stock price swings and investor lawsuits. Shareholders argued that the tweet caused them financial harm, leading to years of legal battles.
The court acknowledged concerns about Musk’s statement but maintained the jury’s conclusion that the tweet was not intentionally misleading. The lawsuit, originally brought by investor Glen Littleton, had sought damages on behalf of affected shareholders.
However, the appeals court determined there was insufficient evidence to overturn the jury’s decision, marking a legal victory for Musk and Tesla.
Musk Welcomes Legal Victory
Following the appeals court ruling, Elon Musk posted on X, formerly Twitter, expressing relief and celebrating the outcome. He also criticized short sellers, accusing them of manipulating Tesla’s stock for personal gain. This decision closes a multi-year legal chapter for the company and its CEO, who have faced frequent scrutiny over their public communications and regulatory filings.
The dismissal of this appeal means that the financial repercussions of Musk’s 2018 statement are unlikely to result in further legal challenges from investors. The outcome offers reassurance for Tesla shareholders and executives, cementing the jury’s original verdict in favor of Musk and his company.
Tesla Stock Surges Following Trump Election Victory
Tesla’s stock experienced a 15% boost after Donald Trump’s recent win in the U.S. presidential election. This surge added approximately $15 billion to Elon Musk’s personal wealth. Investors appear optimistic about how a Trump administration could influence regulatory policies, particularly in sectors where Musk’s companies operate.
Musk has been a vocal supporter of Trump, contributing over $130 million to his campaign efforts, including voter mobilization initiatives. Analysts believe that Trump’s presidency may bring a more business-friendly regulatory approach, potentially benefiting companies like Tesla and SpaceX. Trump’s praise of Musk during campaign events has further strengthened the perception of a favorable partnership between the two.
Regulatory Landscape May Shift Under New Administration
The return of Donald Trump to the White House is expected to bring changes to regulatory oversight. Musk’s companies, which currently face investigations from agencies such as the SEC, could see reduced scrutiny under the new administration. Analysts speculate that federal probes into Tesla and other ventures may ease, fostering a more favorable business environment.
Ripple’s Chief Legal Officer, Stuart Alderoty, commented on the potential for regulatory reform, suggesting that Trump’s administration could take a less aggressive stance on enforcement actions. This shift could position the U.S. as a more competitive environment for industries like cryptocurrency and electric vehicles.
Dogecoin and Musk’s Political Influence
Elon Musk’s support for Dogecoin has remained strong, with analysts predicting that his ties to the new administration could further boost the cryptocurrency’s value. Some reports anticipate Dogecoin reaching $4, as Musk has hinted at integrating the currency into various efficiency initiatives under the incoming government.
Musk’s influence in both the business and political spheres continues to grow, with many watching how his alignment with the new administration will affect his ventures.
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