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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 Cybercab display highlights interior wizardry in the small two-seater
Photos and videos of the production Cybercab were shared in posts on social media platform X.
The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details.
Photos and videos of the production Cybercab were shared in posts on social media platform X.
Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.
The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.
Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.
Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.
Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.
“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.
The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.
Elon Musk
Elon Musk’s xAI wins permit for power plant supporting AI data centers
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”
The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.
“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.
The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.
The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.
The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.
Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.
SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.
“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Elon Musk
Tesla China teases Optimus robot’s human-looking next-gen hands
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus.
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.
If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.
Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.
Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.
In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.
“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Elon Musk’s xAI wins permit for power plant supporting AI data centers
