Jail time for Tesla CEO Elon Musk? CNBC’s David Faber suggested that the entrepreneur could face that reality from his decision to back out of buying Twitter.
Faber joined Jim Cramer and Carl Quintanilla as they led “Squawk on the Street,” where they discussed the latest on the saga. Faber focused on Musk’s insistence that Twitter hasn’t been honest with him regarding how much activity on the platform is forthcoming.
The CNBC analyst stated there has been “no evidence presented thus far in any way to enhance” Musk’s accusations. Furthermore, Musk will have to deliver proof in court to prove his declarations about Twitter’s presumed lack of clarity.
“Even if you were to prove that there were a higher number of bots, you still have to prove that it actually is a material adverse effect,” Faber said, per Mediaite.
Now the situation will shift to the courts as Twitter intends to rely on the legal system as they will ask the Delaware Court of Chancery to enforce the terms of Musk’s agreement.
“Most of the people that you speak with — or at least, certainly that I have — believe that will be the case. Then the question is: you are forcing Mr. Musk to buy the company; does he actually agree to do it? There is this argument being said lately that, well, maybe he will not comply with that. Then we would have a situation where they could put him in jail,” Faber said.
On Sunday, Musk did respond to the latest regarding the issue with him and Twitter using a meme to make light of the situation and perhaps show confidence in his case should it indeed head to the courts.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
