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Tesla, Elon Musk seek dismissal in lawsuit alleging fraud and defamation
Tesla and Elon Musk, jointly named as Defendants with Omar Qazi of the former @tesla_truth Twitter account, have filed a Motion to Dismiss an ongoing lawsuit brought by Plainsite.com owner Aaron Greenspan.
Greenspan, a Tesla short seller often associated with the online “$TSLAQ” community, is seeking an injunction and damages from alleged libelous activity by both Qazi and Musk. He also claims fraudulent communications by Musk and Tesla executives have lead to inflated company stock prices, thereby injuring his financial portfolio via stock purchases made and sold based on those communications. Tesla’s and Musk’s motion for dismissal was made as a separate action from the allegations against Qazi.
The Complaint, initially filed May 20, 2020, and later amended on July 2, 2020, is being litigated in the US Northern District of California, San Francisco Division under docket number 3:20-cv-03426-JD. The Motion to Dismiss was filed on July 31, 2020.
“Plaintiff’s allegations against the Tesla Defendants are not new. Plaintiff has been making the
same unsubstantiated and incendiary accusations—on Twitter, in purported online exposés, and in public and private communications—for years. What is new is Plaintiff’s attempt to transform his conspiracy theories, baseless suspicions, and Internet “research” into a federal lawsuit,” Tesla’s Motion argues against Greenspan’s claims. “Also new is Plaintiff’s apparent view that people should not use hyperbolic language or return his insults on the Internet, and Plaintiff’s claim that Mr. Musk’s dismissive commentary to and about him somehow damaged his reputation.”
The Complaint partly seeks to hold Musk liable for several statements made by Qazi during publicly-aired disagreements with Greenspan, characterizing the CEO’s positive replies to some of Qazi’s online posts as part of a “tag team” effort to discredit him. However, Tesla argues that liability would require a formal agent-type relationship between Qazi and Musk to hold legal weight. “While the [First Amended Complaint] speculates about ties between Mr. Qazi and Mr. Musk, Plaintiff tacitly admits he is not aware of such a relationship, other than alleged interactions on Twitter and in the media,” the Motion argues. Greenspan also cites Qazi’s attendance at a private Tesla event as evidence of an implied connection or common purpose with Musk.
Regarding any defamation claims, substantiated by Greenspan using email replies from Musk as well as Twitter comments in reply to a published article wherein derogatory remarks were made about Greenspan, Tesla’s Motion argues such comments are constitutionally protected opinions. Of particular note in the Complaint’s allegations is a supportive email to Twitter CEO Jack Dorsey sent by Musk purportedly in support of restoring Qazi’s suspended accounts.
“Jack, what Omar is saying is accurate to the best of my knowledge. There has been an
orchestrated and sophisticated attempt to drive down Tesla stock through social media,
particularly Twitter,” Musk wrote.” This always increases around our earnings call, which is this
afternoon. Aaron Greenspan in particular has major issues. He’s the same nut but that claimed he was the founder of Facebook and sued Zuckerberg, among many other things. Never seen anything like it.”
In reference to this cited correspondence, Tesla argues, “As with his other statements, Mr. Musk’s reference to Plaintiff as a “nut but” with “major issues” is nonactionable opinion.”
Most of the all-electric carmaker’s reply in the Motion, though, was focused on a legal defense against the most prevalent claims the Tesla short seller community is most vocal about: The company’s stock prices are artificially inflated due to fraudulent communication regarding their activities.
“As numerous courts have recognized, however, short sellers like Plaintiff…[sell] short because he believes the price of a stock overestimates its true value…whereas the premise of the fraud-on-the-market presumption is that investors rely on the market to reflect a stock’s true value,” Tesla states in their dismissal petition. “Plaintiff does not and could not claim that he relied on any alleged false statements because he believed that Tesla was engaged in fraud during the entire time he was betting against the Tesla stock… Even if Plaintiff could invoke the fraud-on-the market presumption, it would be conclusively rebutted because the Plaintiff plainly…would have bought or sold the stock even had he been aware that the stock’s price was tainted by fraud.”
Ultimately, Greenspan is seeking a declaratory judgment holding Qazi in contempt of court, a permanent injunction preventing further libelous statements against Greenspan in any published medium (written or oral), damages from Defendants’ alleged fraudulent actions to be assessed at time of trial, statutory damages from copyright infringements (over personal photos used as described in the suit), and punitive damages for alleged law breaking. Tesla and Musk, for their part, are seeking to have the case dismissed permanently, i.e., “with prejudice.”
For the average Tesla fan, owner, or stock holder, lawsuits may seem like something to avoid at (nearly) all costs, but Musk does not give the impression he has the same hesitation. The eccentric CEO makes his opinion of short sellers like Greenspan known quite often, and he has even humorously merchandised his ongoing battle by selling bright red “Short Shorts” donning the Tesla logo on the company web store.
With Tesla stocks recently haven risen to a high of $1643 per share, the tensions between the camps will perhaps only continue to rise.
Tesla Motion to Dismiss, Aaron Greenspan by Teslarati on Scribd
News
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Elon Musk
Tesla Giga Texas to feature massive Optimus V4 production line
This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.
Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.
Optimus 4 production
In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas.
This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4.
“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated.
How big Optimus could become
During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world.
“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP.
“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
Tesla Giga Texas to feature massive Optimus V4 production line
