Fall is sure to be busy for Elon Musk.
Tesla’s visionary boss (TSLA) – Get Tesla Inc report It will be active on all fronts every time, and the stakes are huge.
Starting at the end of September, Musk will do everything he can to not disappoint fans of the electric carmaker during the second Tesla AI (Artificial Intelligence) Day. He moved the event from Aug. 19 to Sept. 30 because he planned to show off a humanoid robot that was almost ready for the market.
The billionaire tweeted to his 102 million followers on June 2: “Tesla AI Day postponed to September 30 because we may have an Optimus prototype working by then.”
Once this test passes, Musk starts a dangerous month that could have ramifications for Tesla. In October, a trial on Twitter is planned. Earlier this month, Musk withdrew a proposal to buy the microblogging site for $44 billion, sparking a huge legal battle.
After three months of turmoil, marked by a public drama, the entrepreneur threw in the towel, accusing Twitter of malicious intent over the number of fake accounts or spam bots that exist on the platform. However, one of the reasons Musk gave when he announced the offer on April 14 was to address the issue of fake accounts.
The social media platform filed a lawsuit in Delaware Chancery Court, asking a judge to compel Musk to keep his promise to buy the company. Twitter had asked for an expedited trial, scheduled for mid-September. Musk asked the court to set February 13, 2023, as the earliest trial date.
Prime Minister Kathleen McCormick awarded the first victory to Twitter. On a July 19 conference call, McCormick ruled to expedite the hearing, which will be held for five days in October. Twitter has argued that it wants a quick trial because the merger agreement between the two parties allows either side to terminate the deal for free if it doesn’t close by Oct. 24.
In addition to Twitter, Musk now has another statutory deadline, which starts on October 3. They plan to hold a settlement meeting on that date for the case sued by investors in California, which they say they lost in a tweet from the billionaire in August 2018. He plans to take Tesla private.
Settlement Negotiations in 2018 Tweets
“You are hereby notified that a settlement meeting is scheduled for October 3, 2022 at 10:00 a.m. PT and will be held via Zoom videoconference,” according to the July 22 updated court filing, which was sent to plaintiffs and Musk. Lawyers and View Courtesy of TheStreet.
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The judge also asked the parties to talk beforehand to improve the prospects of a settlement. They must discuss six items, including who will represent the parties at the meeting, which individuals or entities must approve the proposed settlement, and whether the settlement request and/or offer made before the settlement meeting will be useful.
“Not later than fourteen (14) calendar days prior to the Settlement Conference, and prior to the preparation of the Exchange of Settlement Conference Statements and Confidential Settlement Letters, attorneys for both parties must meet and (in person or by telephone) to discuss and improve the settlement negotiations. prospects,” the document states.
Alex Spiro, an attorney for Quinn Emanuel, one of Musk’s attorneys, told TheStreet that the settlement meeting was requested by the court.
However, this latest development shows that significant progress has been made in the case, which is based on the infamous tweet sent by the CEO on August 7, 2018. That day, Musk wrote that he wanted to take Tesla out of the stock market at $420 a share. On top of that, he added, he has secured financing for such deals.
“Taking Tesla private at $420 under consideration. Funding secured,” Musk wrote.
The U.S. Securities and Exchange Commission (SEC) launched an investigation and a settlement was reached in September 2018. According to the agreement, Musk will step down as chairman of Tesla’s board of directors and pay a fine of $20 million, and Tesla will also pay a penalty of $20 million. Tesla also pledged to pre-approve Musk’s tweets that could potentially impact the stock.
Some shareholders have decided to attack Musk in court with a class-action lawsuit filed in the U.S. District Court for the Northern District of California in San Francisco. They felt they were wronged by Musk’s tweets, and most importantly, they claimed Musk lied that he had the necessary funds to fund the deal.
On April 15, California Judge Edward Chen said Musk’s statement was false. The judge concluded that Musk’s behavior was “more scientific,” meaning he made a willful false statement about obtaining funding when he tweeted.
“Nothing will change the fact that Elon Musk is considering taking Tesla private and might have,” Spiro told TheStreet at the time. “After about five years all that’s left is random plaintiffs’ attorneys trying to make money, and everyone else They are trying to prevent the truth from being exposed, thereby compromising freedom of speech.”
If the parties do not reach an agreement, the trial is scheduled for January.