These days, Elon Musk’s tweets essentially function as Tesla’s PR department. But while the CEO’s Twitter account has kept people abreast of company updates, it’s also landed Musk and the automaker in legal hot water. Not just once, but multiple times. So, it shouldn’t be surprising why a newly-unsealed federal ruling has Musk in the hot seat again.

elon musk, tesla

An illustration of Elon Musk tweets circa April 25, 2022 | Scott Olson/Getty Images

This time, the issue is a tweet Elon Musk sent out in 2018 that claimed he was “considering taking Tesla private at $420.” And in the next line, he stated “Funding secured.” However, U.S. District Judge Edward Chen of San Francisco ruled that Musk acted recklessly in tweeting that out. Although Musk was meeting with representatives from Saudi Arabia’s Public Investment Fund at the time, he never actually had secure funding. Hence why Judge Chen issued his ruling.

But this ruling isn’t just about Elon Musk’s tweets. Keep in mind that Tesla was at the time and remains a publicly-traded company. Thus, this new ruling might have a serious impact on the ongoing investigation into Tesla’s stock price.

This story is being updated.

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