Tesla CEO Elon Musk has settled a lawsuit with a former Tesla employee who accused him of defamation, according to court documents filed on April 26th. The settlement requires Musk to pay $10,000 to the former employee, who had accused him of directing a smear campaign against her on social media.
The lawsuit was filed in September 2019 by an ex-Tesla employee named Randeep Hothi, who had been critical of Musk and the company on his Twitter account. Hothi claimed that Musk falsely accused him of trespassing on Tesla’s property and of being a stalker. Musk responded to Hothi’s tweets by urging his followers to investigate Hothi’s activities, which Hothi claimed led to harassment and threats against him and his family.
In the lawsuit, Hothi accused Musk of intentionally inflicting emotional distress, defamation, and invasion of privacy. Musk denied the allegations, but the case was set to go to trial this year before the settlement was reached.
The $10,000 settlement amount is a small sum for Musk, who is estimated to be worth over $150 billion. However, it is significant because it marks the first time that Musk has been held financially responsible for his actions on social media.
Musk has a history of using Twitter to make bold statements and engage in public disputes. In 2018, he tweeted that he was considering taking Tesla private, which led to an investigation by the Securities and Exchange Commission (SEC). Musk settled with the SEC by agreeing to step down as chairman of Tesla’s board of directors and to pay a $20 million fine.
In another incident, Musk was sued by a British diver who participated in the rescue of a group of boys from a cave in Thailand. Musk called the diver a “pedo guy” on Twitter, which the diver claimed was false and defamatory. Musk later apologized and settled the lawsuit for an undisclosed amount.
The settlement with Hothi may signal a shift in Musk’s approach to social media. While he has built a reputation for being a maverick CEO who is unafraid to speak his mind, his tweets have also landed him in legal trouble. As Tesla continues to grow and become a more established company, Musk may need to be more cautious about his social media activity and the potential consequences of his statements.
The Hothi settlement also highlights the broader issue of online harassment and the role that social media companies play in preventing it. Twitter has faced criticism for its handling of harassment on its platform, and the company has recently taken steps to address the issue, such as implementing stronger rules against hate speech and misinformation.
In conclusion, Elon Musk has settled a lawsuit with a former Tesla employee for $10,000 over alleged defamation on social media. The settlement marks the first time that Musk has been held financially responsible for his actions on social media and may signal a shift in his approach to Twitter. The case also highlights the broader issue of online harassment and the role that social media companies play in preventing it.
