Elon Musk Ordered to Pay $2.1 Billion After Jury Finds Him Liable for Driving Down Twitter Stock Ahead of $44B Takeover

Elon Musk, the billionaire behind Tesla and SpaceX, has been ordered to pay $2.1 billion in damages after a San Francisco jury found he misled investors during his 2022 bid to buy Twitter. The unanimous verdict came after two days of deliberations, marking the first time Musk has been held legally responsible for his tweets.

How the Case Began

The lawsuit was filed by investors who claimed Musk’s public comments about Twitter’s user base and fake accounts caused the company’s stock price to fall. In May 2022, just weeks after signing the $44 billion purchase agreement, Musk tweeted that the deal was “on hold” because of concerns about bots. He later suggested that up to 20 percent of Twitter’s users could be fake, far higher than the company’s reported 5 percent.

Those remarks triggered a sharp drop in Twitter’s stock between $3 and $8 per share leaving investors who sold during that period with heavy losses.

Musk’s Defense in Court

On the witness stand earlier this month, Musk argued that he never intended to mislead anyone. He said he was simply sharing his thoughts and that people read too much into his tweets. At one point, he admitted: “If this was a trial on whether I’ve made stupid tweets, I’d say I’m guilty.”

But the jury concluded that his statements were intentionally misleading and aimed at lowering the stock price to renegotiate the deal.

Impact on Investors

The damages could rise to $2.6 billion once stock options are included. Each investor in the class action may receive thousands of dollars in compensation, with payouts expected within six months.

One plaintiff, Brian Belgrave from Oregon, testified that he sold thousands of shares in July 2022 after believing Musk was backing out of the deal. He later realized he had sold at a loss compared to the final takeover price of $54.20 per share. “I got cheated,” he told the jury.

Legal experts say the ruling sends a strong warning to business leaders. Monte Mann, a trial attorney, explained: “If you move the market with your words, you own the consequences.”

Despite the turmoil, Musk eventually closed the deal at the original $44 billion price in October 2022 after Twitter sued him to enforce the agreement. The following year, he rebranded the platform as X.

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