“Major Legal Blow”: Jury Says Tesla’s (TSLA) Elon Musk Misled Twitter Shareholders Before $44B Takeover

FomoAnxiety · 2026-03-20T23:19:10+00:00

A federal jury found that Elon Musk misled Twitter shareholders before his 2022 acquisition, impacting the stock price. While Musk's statements were deemed misleading, the jury concluded there was no intent to defraud. Damages are expected to be significant.

FomoAnxiety

2026-03-20 23:19:10

Abstract generation in progress

A federal jury in California has ruled that Tesla TSLA -3.24% ▼ CEO Elon Musk misled Twitter shareholders in the months leading up to his $44 billion takeover of the platform in 2022. The decision marks a major legal setback for Musk, who has often prevailed in high‑profile courtroom battles.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Jurors found that several of Musk’s public statements, including tweets suggesting the deal was “temporarily on hold” and comments about the number of fake accounts on the platform, misled investors and pushed Twitter’s stock price lower. However, the jury did not conclude that Musk intentionally sought to defraud shareholders.

The exact amount Musk will be required to pay shareholders will be determined in a later proceeding, but the total is expected to be substantial.

Background on the Lawsuit

The class action lawsuit focused on whether Musk’s comments influenced investors who sold their shares during the acquisition process. Shareholders claimed that Musk’s remarks were part of an effort to pressure Twitter into accepting a lower price.

Have high conviction in TSLA? Leverage your view

Jurors agreed that his tweets had a measurable impact on Twitter’s stock, with estimated damages ranging from $3 to $8 per share per day, adding up to potentially billions of dollars.

A major focus of the trial was Musk’s repeated claims that Twitter had far more fake and spam accounts than disclosed in regulatory filings. Musk said this justified his attempt to walk away from the deal.

Twitter executives disputed those claims, and the jury ultimately determined that Musk’s public comments misled investors regardless of his stated concerns.

Is Tesla a Buy, Sell, or Hold?

Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 11 Holds, and seven Sells assigned in the last three months. At $399.25, the average Tesla price target implies an 8.5% upside potential.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.