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Tesla Investors Sue Musk, Say His ‘Unchecked’ Tweets Hurting Company

In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private

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Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

A group of institutional investors in Tesla has sued CEO Elon Musk, alleging that his repeated “misstatements on Twitter” continue to harm the company and its shareholders.

According to a report in CNET late Friday, the investors sued the Tesla and SpaceX CEO, saying Musk’s “ongoing unchecked misstatements on Twitter have hurt the electric car maker.

“Musk has continually disregarded all efforts to rein in his material misstatements on social media,” law firm Grant and Eisenhofer Director Michael Barry, representing the investors, said in the statement.

“He has ignored federal court orders, a settlement with the SEC (Securities and Exchange Commission), and even his company’s own corporate policies expressedly requiring that any of his tweets regarding Tesla be pre-screened.

“His conduct has not only cost Tesla shareholders dearly but threatens to expose the company to even greater liability and litigation in the future,” the statement further said.

Tesla was yet to comment on the lawsuit.

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Visitors inspect Tesla electric cars at Brussels Motor Show, Belgium, Jan. 18, 2019. VOA

The US SEC in February asked a US federal judge to hold Musk in contempt for violating a settlement deal reached in 2018.

The development came in response to Musk’s tweet on February 19 that “Tesla made 0 cars in 2011, but will make around 500K in 2019”.

Hours later, the billionaire sent a follow-up tweet indicating that the company will actually deliver just 400,000 cars this year.

Also Read- YouTube Testing a “Fact Check” Alert For Sensitive Searches in India

The US regulators slammed the Tesla CEO because he “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers”.

In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private. (IANS)

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Micro-blogging Site Twitter Aims to Restrict Users, Not World Leaders Like Trump

"These are constantly evolving challenges and we'll keep our policies and approach under advisement, particularly as we learn more about the relationship between Tweets from world leaders and the potential for offline harm," it added

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Twitter is a social media app that encourages short tweets and brief conversations. Pixabay

Stating that world leaders are not above its policies “entirely,” Twitter has decided to restrict how users can interact with harmful tweets from world leaders who break its rules, but did not clarify whether it will remove or block the world leader like US President Donald Trump from doing so.

The micro-blogging platform said it will not allow users to like, reply, share or retweet offending posts from world leaders.

“You will not be able to like, reply, share, or Retweet the Tweet in question. You will still be able to express your opinion with Retweet with Comment,” the company said on Tuesday.

“Our goal is to enforce our rules judiciously and impartially. In doing so, we aim to provide direct insight into our enforcement decision-making, to serve public conversation, and protect the public’s right to hear from their leaders and to hold them to account,” it added.

Twitter has been facing pressure to take action against US President Donald Trump for posting controversial tweets, but the micro-blogging platform has been evading action.

Earlier this month, California Senator Kamala Harris, who is a 2020 Democrat presidential candidate, asked Twitter to suspend Trump’s account for attacking lawmakers and the whistleblower behind a complaint on his shady dealings with Ukraine.

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A man reads tweets on his phone in front of a displayed Twitter logo. VOA

“Trump’s Twitter account should be suspended. There’s plenty of evidence to suggest that he is irresponsible with his words in a way that could result in harm as the privilege of using those words in that way should probably be taken from him,” Harris told CNN.

Trump has repeatedly used Twitter to attack his political opponents.

In a series of tweets, he said that House Intelligence Chairman Adam Schiff should be arrested for treason for exaggerating parts of phone call Trump had with Zelensky.

Also Read: Uber Lays off 350 Staff Across Eats, Self-driving Wings

If a tweet from a world leader does violate its rules, but there is a clear public interest value to keeping the Tweet on the service, the company said on Tuesday that it “may place it behind a notice that provides context about the violation and allows people to click through should they wish to see the content”.

“With critical elections and shifting political dynamics around the world, we recognise that we’re operating in an increasingly complex and polarised political culture,” said Twitter.

“These are constantly evolving challenges and we’ll keep our policies and approach under advisement, particularly as we learn more about the relationship between Tweets from world leaders and the potential for offline harm,” it added. (IANS)