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The case is a rare securities class action trial, and Musk and
his company are bucking the norm of settling claims that clear
high legal hurdles, making for a potentially dramatic trial at
which Musk himself may testify.
Tesla investor Glen Littleton is seeking "billions" in damages
on behalf of shareholders who traded the company's stock in the
days after Musk posted his plan to take the company private on
Twitter in August 2018.
A jury of nine will decide whether the tweets artificially
inflated Tesla's share price by playing up the status of funding
for the deal, and if so, by how much.
The defendants, who also include current and former Tesla
directors, have said they will argue that the stock price jumped
in response to Musk saying he was considering taking the company
private, which they say was the case, not his assertion about
funding.
U.S. District Judge Edward Chen, who is overseeing the trial,
has ruled that Musk's statements about the status of the deal
were false and Musk made them recklessly. The deal did not
happen.
While shareholders sue hundreds of companies and their
executives for alleged securities fraud every year, very few of
those cases make it to trial. The vast majority are either
dismissed by courts or settle.
Not among the jurors selected on Tuesday were some critics of
Musk, such as one potential juror who said the chief executive,
who has gained a reputation for the unpredictable, was "a little
off his rocker."
After opening statements, shareholders will be able to start
calling witnesses to the stand. Musk may take the stand in the
case, according to court documents, along with former board
member Larry Ellison, Oracle Corp co-founder, and current board
member James Murdoch, son of Fox Corp Chairman Rupert Murdoch.
(Reporting by Jody Godoy in San Francisco; Editing by Peter
Henderson and Matthew Lewis)
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