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Tesla’s Elon Musk seeks TX venue in class action lawsuit over Bay Area juror concerns

Steve Jurvetson from Menlo Park, USA, CC BY 2.0 , via Wikimedia Commons

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Elon Musk has requested that a shareholder class action lawsuit be transferred from San Francisco, California, to West Texas. Musk’s legal team has argued that the CEO believes there is a lack of unbiased jurors in the Bay Area. 

Elon Musk and other Tesla board members are facing a lawsuit that alleged that the CEO manipulated the company’s stock in 2018. The legal action is based on Musk’s infamous “funding secured” tweet, which expressed his intention to take Tesla private at a price of $420 per share. A federal judge is currently considering the motion from Musk’s legal team. 

Musk’s “funding secured” tweet triggered wild swings in TSLA stock price and it also initiated an attempted privatization of electric vehicle maker Tesla. Reports later revealed that Musk ultimately backed out of Tesla’s privatization attempt. 

In a ruling last year, Senior District Judge Edward M. Chen of Northern California stated that Musk’s 2018 statements were false, and he had knowledge of their falsity. The upcoming trial will determine if the tweets had any impact on shareholders, if and how TSLA shares were affected, and if the company or its directors should be held liable, as per Deadline.

As per Musk’s legal team, however, the CEO’s takeover last year of social media platform Twitter has generated large amounts of negative publicity. This, according to Musk’s camp, could compromise the objectivity of potential jurors in the Bay Area. 

“The recent local media coverage has created an environment that encourages the District’s jury pool to hold negative biases against Mr. Musk’s use of Twitter. Since October 2022, the local press has published stories accusing Mr. Musk of encouraging and personally participating in the purported spread of misinformation on the platform, including by posting the Tweets at issue in this case.

“This negative and prejudicial publicity thus infects a core issue in this case. Potential jurors that hold negative opinions about Mr. Musk’s use and relationship with Twitter generally as a result of this coverage will be unable to separate this baseline bias from the facts in this case and thus be unable to impartially evaluate Mr. Musk’s conduct in connection with the August 7 Tweets,” the brief noted

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While Musk’s request could be framed as the CEO trying to get away from valid criticism, jurors must be as objective as possible. The sheer volume of negative pieces against Musk in mainstream and social media has been quite notable since the Twitter takeover. This was especially the case following Musk’s increasing tendency to be political on Twitter, which has resulted in some longtime supporters urging the CEO to lay off the politics and focus on Tesla and SpaceX. 

Musk’s motion can be viewed below.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Energy

Tesla launches Powerwall Lease for affordable home backup

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Credit: Tesla

Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.

Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.

This credit lowers the effective cost to roughly $35 per month plus applicable tax.

Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.

The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.

Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.

The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.

Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.

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News

Elon Musk teases Tesla Roadster unveiling once again

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tesla roadster
Credit: Tesla

Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.

A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”

Musk agreed:

The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.

It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:

“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”

The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.

However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.

For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”

We sure hope.

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Lifestyle

Tesla’s driverless Cybercab just passed a big test with State Governor

Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.

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Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”

The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”

DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.

SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.

Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.

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