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Elon Musk was ‘recklessly’ Tweeting during 2018 ‘funding secured’ saga: Federal Judge

Credit: TED

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When Elon Musk Tweeted about potentially taking Tesla private in 2018, he was ‘recklessly’ communicating about an unfinalized deal, according to U.S. District Judge Edward Chen. Chen said in a San Francisco courtroom that the Tesla CEO’s communications through the social media platform were inaccurate when talking about potential financing from the Saudi Arabia sovereign wealth fund.

“No reasonable jury could find that Mr. Musk did not act recklessly given his clear knowledge of the discussions,” Judge Chen said regarding Musk’s 2018 Tweet. “Rather, discussions between Tesla and the PIF were clearly at the preliminary stage.”

The ruling was sealed until yesterday, but the judgment was actually made on April 1.

It is the latest update in a trial that aims to find whether Musk increased stock prices with the Tweets that hinted toward potentially taking Tesla shares private at $420 per share. Shareholders said Musk’s statements were false and misleading and led to billions of dollars in losses.

“It is hugely significant,” Nicholas Porritt, an attorney for the shareholders said to Reuters. Porritt added that it is rare that class action plaintiffs get a summary judgment on falsity before going to a jury trial, which will happen in January 2023.

Judge Chen has been critical of Musk’s Tweets during the suit. In past developments, Chen has challenged the legitimacy of Musk’s claims for some time and has previously ruled that the CEO’s corporate communications, especially when dealing with the “funding secured” line in specific, were not entirely truthful. Musk has objected to this claim on several occasions in interviews outside of the courtroom. Most recently, Musk commented during an interview with Head of TED Chris Anderson that his acceptance of a 2018 consent decree gave the wrong impression.

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Tesla’s Elon Musk shares new insights on “funding secured” tweet as messages with Saudi PIF are revealed

“It makes it look like I lied, when I did not, in fact, lie. I was forced to admit I lied to save Tesla’s life,” Musk said. Musk added that he was forced to accept the terms of the SEC’s decree or he would no longer be able to acquire capital from banks to keep Tesla up and running.

After Musk’s comments, shareholders complained that the CEO should not be allowed to talk about details of the case in public. The court ruled to not muzzle Musk, as Judge Chen said it was not evidently justified and that Tesla’s frontman was protected by first amendment rights.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk and Trump are closer than ever, and Tesla could be the big winner

Elon Musk sat beside Trump as AI leaders signed a voluntary White House safety accord.

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Elon Musk had the seat right next to President Donald Trump on Tuesday as the White House hosted the leaders of America’s biggest artificial intelligence companies for a lunch that ended with a voluntary industry accord on AI safety.

A seating chart Trump posted on Truth Social placed Musk at the president’s left in the East Room, with Nvidia CEO Jensen Huang on his right, according to an Associated Press reporter. Anthropic CEO Dario Amodei, OpenAI President Greg Brockman, Meta’s Mark Zuckerberg, Google’s Sundar Pichai, Microsoft’s Satya Nadella and Amazon founder Jeff Bezos also attended, along with Vice President JD Vance and House Speaker Mike Johnson.

After the lunch, Trump told reporters outside the West Wing that the executives had signed “The White House Accord on Superintelligence: A Joint Commitment on Frontier SI Responsibilities.” Johnson described it as a voluntary statement of principles built on “robust internal controls and layers of internal and external review,” while Zuckerberg said company boards would independently review reports from outside auditors. Trump called the document “morally binding,” said he would name a new AI czar within days, and signed an executive order formally renaming artificial intelligence “super intelligence,” CNBC reported.

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Musk was not in the room for Tesla alone. Since SpaceX absorbed xAI, he runs the company behind Grok and one of the largest AI training operations anywhere. On September 25, he said another 220,000 Nvidia GB300 chips would come online at Colossus 2 within a week, with more expected in November and December.

SpaceX confirms third massive compute deal at Colossus data center

 

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Musk also used the trip to restate his energy ambitions. “SpaceX is aiming together with Tesla to do 200 gigawatts of solar production per year,” he said at an event in Washington. It is the same combined target he laid out that feeds directly into Terafab, the Tesla and SpaceX chip venture that will need enormous amounts of power.

The showing between Musk and Trump has come a long way, since the two had the very public split in mid 2025 after Musk opposed the “Big Beautiful Bill” and left DOGE. They reconciled at Charlie Kirk’s memorial that September, and Trump later called their relationship “good”. Since then, Musk has joined Trump’s China delegation in May and attended last week’s White House state dinner for Chinese President Xi Jinping.

For Tesla, that access to government official could pay dividends. As Teslarati noted in January, federal autonomy rules, NHTSA oversight and a single national standard for driverless vehicles all run through an administration Musk can more easily reach directly as Tesla works to scale Robotaxi and Cybercab beyond Texas.

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Tesla Roadster’s new patent preps white-knuckle speeds, keeping it grounded

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Credit: @BLKMDL3/Twitter

Ahead of its highly anticipated unveiling, Tesla’s upcoming Roadster received a new patent that aims to keep it grounded while enabling white-knuckle speeds.

The patent, which was granted on September 29, is titled “Electric Car Fan,” bluntly stating its design but not its purpose, which is further detailed in the text of the application. Interestingly, it comes two weeks before the Roadster event, which was delayed due to unfavorable weather on Thursday, which could cause issues, as Tesla revealed the event must be held outdoors.

The purpose is to solve a problem that is relatively unique to high-performance electric cars. Instant motor torque is useless if the tires cannot plant that force, and conventional wings and underbody tunnels generate downforce only when air is already rushing past the car. At launch, in slow corners, and under hard braking from modest speed, passive aerodynamic additions contribute essentially very little to downforce.

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Tesla’s filing says that its fans can produce the downforce needed, independent of vehicle velocity, then ease off so the same hardware does not pile on drag at highway speeds, an issue that can come from excessive body modifications.

The hardware outlined in the patent is a ducted-fan package that is placed into the rear of the vehicle. An underbody inlet between the rear wheels feeds a duct that rises to a wide outlet in the diffuser. In that outlet are four axial fans, which are divided by vertical strakes. They will pull air from under the floor and press the chassis onto the pavement.

The language in the patent claims it can cut drag rather than add to it while simultaneously increasing downforce.

Tesla Roadster event requires restricted airspace, and the FAA obliges

The fans run from the high-voltage battery and a vehicle control system, so output can be modulated rather than left on as a fixed penalty.

There are additional strengths that can come from this design, like extra tire load at low speed, which can contribute to even more face-melting acceleration rates, decrease stopping distance, and sharper turn-in before a wing has air to work with. Adjustable fan speed lets the car add grip only when needed, so it can be catered to the force of a turn or acceleration.

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These designs were previously used, and banned, in some competitive settings. The Brabham BT46B was banned in F1 competition for using a similar fan design and being labeled as too effective.

Tesla still lists the Roadster as having a sub-two-second 0-60 MPH time and a 250-plus-MPH top speed, and there are expectations for a SpaceX cold-gas thruster package that could not only increase acceleration but potentially cause the vehicle to hover.

It is important to note that a patent is not a production part, and packaging four fans in a rear diffuser, managing noise, and potential debris are all things Tesla must consider. With that being said, the patent being granted shows Tesla is designing the Roadster to go fast, but it is also attempting to use unique strategies to combat any issues it might have at those speeds.

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Investor's Corner

Tesla showrooms picked clean ahead of Q3 end as demand looks strong

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Credit: @thaichiminh1907/X

Tesla (NASDAQ: TSLA) showrooms have been picked clean ahead of the end of the third quarter of the year, as demand looks to be strong and delivery estimates for new vehicles are pushed into late 2026 and early 2027.

Tesla appears to have sold out of many of its Model 3 and Model Y trim levels in the United States, as only the Model Y RWD and Model Y All-Wheel-Drive are available for delivery before the end of the year.

Additionally, many showrooms are either completely empty or void of all but just one demo unit within the buildings themselves in an effort to bolster what could be one of Tesla’s best quarters in vehicle deliveries in recent memory.

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Additionally, when I spoke to the guys at Tesla Mechanicsburg two weeks ago, when I returned the Model Y L, their third hauler of the week had just arrived, and every vehicle on it, along with every vehicle in their delivery lot, was accounted for and had a name attached to it for delivery.

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Tesla saw a 25 percent increase in deliveries in Q2 compared to the same quarter the year before. The vast majority of the 480,126 units it delivered, 467,762 vehicles to be exact, were the Model 3 and Model Y.

In Q3 2025, Tesla delivered 497,099 vehicles, once again a figure that was dominated by the company’s two mass-market vehicles. Analysts have unusually wide predictions for this quarter, likely because so many firms missed the Q2 delivery figure by such a substantial margin; Wall Street predicted 408,000 cars, while Tesla delivered 480,000.

Goldman Sachs has Tesla slotted for 435,000 deliveries in Q3, while JPMorgan said it anticipates 482,000. The median guess is about 449,000 deliveries for Q3.

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Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.

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