Current stock price for tesla trial#
Proving that Musk’s tweets were “material” in causing investors to lose money on Tesla stock is one of three key legal points that attorneys for the investors must make to prove that what happened constituted securities fraud, legal experts said.īut, even before the trial began, the judge had already ruled that Musk’s tweets were both “false” and “reckless”, checking off two of those points in the investors’ favor. “Given how quickly Tesla’s stock price responded to the ‘funding secured’ Tweet, it seems that many investors believed this tweet to be a signal of Musk’s true intention to take the company private at a premium, which had a positive, immediate and sustained impact on the stock price.” “This seems like a weak defense,” based on the timeline evidence entered into the court record by expert witness Michael L Hartzmark, said Josh White, an assistant professor of finance at Vanderbilt University, who is a former financial economist for the US Securities and Exchange Commission. Legal and finance experts observing the case say Tesla’s attorneys face an “uphill battle” to make the claim that his tweet didn’t materially affect the price of the stock, which they say seems to be a key argument in the company’s defense against the shareholders’ charge that Musk cost them “billions” by misleadingly pumping up the stock price. “Just because I tweet something does not mean people believe it or will act accordingly,” Musk told the jury in a San Francisco federal court Friday. This timeline, laid out by an expert witness in a 372-page filing in the case, is likely to be a crucial piece of evidence in the jury trial going on in a San Francisco courtroom, where Musk testified this week that his tweets may not have caused Tesla’s stock price jumps. Within one minute, the price of Tesla’s stock shot up by $8 a share and, by the end of that afternoon, the stock had climbed by more than $20 – a 6% – only to tank 10 days later when it became clear the $72bn deal was not on the horizon at all.
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