TSLA Rises After Hours As Elon Musk’s Twitter Verdict Fails To Dent Sentiment

• According to a Reuters report, Elon Musk allegedly deceived Twitter investors during the 2022 acquisition. However, Tesla stock is up in after-hours trading.
• Broader fraud claims were rejected by the jury; damages are yet to be decided, and Musk intends to appeal the ruling.
• TSLA is still down about 16% so far this year, and retail sentiment on Stocktwits has remained in the "bearish" zone over the past day.

Tesla Inc. (TSLA) shares increased in after-hours trading on Saturday despite a mixed verdict from a U.S. federal jury in a well-known case involving CEO Elon Musk's 2022 acquisition of Twitter, now known as X.

In late trading, the stock rose about 1.2% to $372, partially reversing its decline during the regular session. Tesla ended with a 3.2% decline on Friday. 

The rise in Tesla stock comes amid a San Francisco jury's finding that Musk allegedly lied to Twitter investors during the 2022 acquisition process, according to a Reuters report.  

Jurors decided that Musk made statements, including public comments about the prevalence of fake accounts, that contributed to downward pressure on X’s stock price as he sought to renegotiate the $44 billion deal.

The eight-member jury rejected two of the four fraud-related claims, but it did not conclude that Musk planned a larger scheme to deceive investors. In a later stage of the case, damages that could amount to hundreds of millions or more will be decided. According to Musk's legal team, the ruling will be appealed.

Elon Musk’s 2018 Lawsuit 

Elon Musk was previously charged by the SEC in 2018 with deceiving investors when he tweeted that he had "funding secured" to take Tesla private at $420 per share, even though the deal was not yet finalized. 

The tweets disrupted the market and drove up Tesla's stock price. Additionally, the SEC accused Tesla of improperly monitoring Musk's communications. Without acknowledging any wrongdoing, Musk and Tesla reached a settlement under which they each paid $20 million in fines, and Musk resigned as chairman for 3 years.

What Are Stocktwits Users Saying?

Tesla's stock has dropped sharply so far this year, by roughly 16%. From levels above $440 to the current high-$360 range, the shares have been trending lower since January.

On Stocktwits, retail sentiment around TSLA remained in the ‘bearish’ territory as chatter levels remained at ‘high’ over the past day.

A Stocktwits user asked whether a SpaceX IPO might affect Tesla's stock performance, perhaps by diverting capital from the company or altering investors' perceptions of Elon Musk's broader business empire. Some users are also bearish on Tesla, arguing that its valuation is inflated and will continue to fall, especially if Musk-related businesses lose government support.

Focus has also been placed on Tesla's strategic direction. As it pursues grid-scale battery opportunities tied to the nation's clean energy push, the company is expanding beyond electric vehicles and plans to enter India's energy storage market. The action is taken at a time when global competition for EVs and energy solutions is intensifying.

Read also: Dell Stock Is Gaining In After Hours – Here’s Why

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