Elon Musk, the CEO of Tesla Inc., and his business were found not at fault by a U.S. jury on Friday for deceiving investors when Musk tweeted in 2018 that he had “funding secured” to take the electric vehicle firm private.
Plaintiffs had sought billions in damages, and Musk himself, who frequently expresses his opinions on Twitter, had deemed the ruling crucial.
Two hours into the jury’s deliberations, they returned with a unanimous decision.
Musk was not present in court when the verdict was read but soon tweeted that he was “deeply appreciative” of the jury’s decision.
“Thank goodness, the wisdom of the people has prevailed,” he said.
Nicholas Porritt, a lawyer for the investors, said in a statement, “We are disappointed with the verdict and are considering next steps.”
Shares of Tesla rose 1.6% in after-hours trading following the verdict.
“A dark chapter is now closed for Musk and Tesla,” Wedbush analyst Dan Ives said. Ives added that some Tesla investors feared Musk might have to sell more Tesla stock if he lost.
The world’s second-richest person has previously created legal and regulatory headaches through his sometimes impulsive use of Twitter, the social media company he bought for $44 billion in October.
Minor Myers, who teaches corporate law at the University of Connecticut and who had previously called the investors’ case strong, called the outcome “astounding.”
The U.S. anti-securities fraud law “has always been thought to be this great bulwark against misstatements and falsehoods,” he said. “This outcome makes you wonder if it is up to the job in modern markets,” he said, adding that Musk himself was likely to “double down” on his communication tactics after the verdict.
Musk’s attention has been divided in recent months between Tesla, his rocket company SpaceX and now Twitter. Tesla investors have expressed concerns that running the social media company has taken up too much of his focus.