Elon Musk should be allowed to talk a lawsuit over a tweet in 2018 about taking his electric car company private, according to a federal judge ruling.
US District Judge Edward Chen in San Francisco did not find any evidence that Musk's public statements posed a "clear and present danger" or a "serious and imminent threat" to a trial.
Some Tesla shareholders sued Musk over losses resulting from volatility in the company's shares after he tweeted on August 7, 2018, that he had "funding secured" for Tesla to potentially go private at US$420 per share and that "investor support is confirmed."
Lawyer Nicholas Porritt, representing the shareholders, said he was pleased jurors will be instructed that the tweets "were false and were made fraudulently by Elon Musk."
The main issue remains the amount of damages owed, Porritt said.
Musk and Tesla contend the restriction "evokes a level of censorship" that is inconsistent with the US Constitution's guarantee of free speech.