Table of Contents
What has happened?
- Tesla CEO Elon Musk lost the round one of battle with the critic of his company who had sued him for
- A California judge has denied SpaceX founder’s request to reject the lawsuit filed by Randeep Hothi, a Tesla short-seller
- Who had said in August 2020 that Musk had defamed him and even hampered his reputation by writing an email claiming that Hothi has “almost killed Tesla employees”.
- The Tesla CEO had attempted to overturn the lawsuit but his remained unsuccessful.
About the ruling
- Judge Julia Spain of Alameda County Superior Court in California rejected Musk’s claims that the lawsuit was baseless and an attempt to stifle his free speech.
- In a ruling published on Wednesday, the judge said there were grounds for a trial, adding that Hothi could win.
- Spain ruled that Musk’s statements about Hothi were not protected under California’s Anti-SLAPP statute,
- Which allows lawsuits to be dismissed quickly if they interfere with the defendant’s free speech,
- As Tesla did not demonstrate that Musk’s statements were made in connection with a matter of public interest.
Defamation case against Musk
- Randeep Hothi is a University of Michigan graduate student who drew Elon Musk’s wrath at least two years ago,
- Following two separate incidents including Hothi’s harmless claims.
- Firstly, in February 2019, Hothi was confronted by a security guard when he went to do research reportedly at Tesla sales centre in Fremont, California.
- According to Hothi’s suit, it was an “attempt to gather information about Model 3 production.“
- He claims Tesla recognized his license plate and sent a security guard to confront him.
- Secondly, in April 2019, Hothi said he was driving when he had spotted a Tesla test car with roof-mounted cameras used for capturing video and audio for the company’s autopilot feature.
- Houthi took photos of it and posted online.
- The incidents led Tesla to file a temporary restraining order against Hothi in April 2019,
- Which claimed that Hothi had hit the security guard with his car at Tesla’s Fremont factory and
- Had endangered those driving the Tesla car by “swerving dangerously close to the vehicle.”
- Tesla’s suit also claimed that Hothi had trespassed on Tesla property multiple times.
- Attorney and fellow Tesla short-seller Lawrence Fossi helped Hothi raise more than $100,000 for his defense, calling him “a seeker of truth who has done valuable work.“
- But Tesla dropped the suit last year after a judge ordered the company to provide evidence to back up its claims.
Hothi filed a lawsuit
- Hothi claimed that Musk had unleashed an online hate campaign against him and filed the lawsuit in August in Alameda county superior court.
- But, Tesla CEO asked the judge to strike the lawsuit on the grounds that his remarks were a matter of public interest.
Musk’s fight with short sellers
- Elon Musk had years-long war with short-sellers.
- Musk publicly despises short-sellers, investors who attempt to profit by betting on Tesla stock taking a dive in value.
- He has frequently railed against the practice, taunting those who engage in it with actual pairs of shorts,
- Even going as far as to produce Tesla-branded, red, satin short shortsand selling them in Tesla’s online store.
Q) Who among the following has the right to establish the bench of the Supreme Court elsewhere in the country?
- The Chief Justice of the Supreme Court
- The President of India
- The Parliament
- Bench of Supreme Court of Judges
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