Musk in Dispute with Graduate Student... Pays Settlement of 13 Million Won

Landip Hotie Faces Defamation Lawsuit
Agrees to Pay $10,000 Settlement Instead of Trial
Tesla: "Accepted Civil Law Proposal"

Elon Musk, CEO of Tesla, ended up agreeing to pay a settlement after being sued for defamation following an argument with a graduate student who criticized him.

Bloomberg reported on the 2nd (local time) that Musk agreed to pay graduate student Randeep Hothi a total of $10,000 (approximately 13.4 million KRW). Randeep Hothi, who became famous for posting critical articles about Tesla in the past, recently filed a defamation lawsuit against Musk.

The conflict between the two began in 2018. At that time, Hothi posted multiple analytical tweets claiming that Tesla was facing difficulties in producing the Model 3 sedan. Uniquely, Hothi did not analyze financial statements or documents like other market analysts but instead used a field investigation method by monitoring the exterior of Tesla’s factory with a drone equipped with a camera.

Bloomberg added that his analytical posts became valuable information for Tesla short-sellers.

Elon Musk Tesla CEO
Photo by Reuters Yonhap News

In 2019, Tesla filed for a restraining order against Hothi, accusing him of dangerously cutting in front of a Model 3 vehicle during a driving test, injuring security personnel while trespassing on company property, and harassing employees by secretly approaching the factory.

Hothi, who grew up in Fremont, California, near the Tesla factory, denied these allegations, and Tesla later withdrew the lawsuit, stepping back.

Although the conflict between Tesla and Hothi was temporarily resolved, Musk, Tesla’s founder and CEO, continued to argue with Hothi. Eventually, in 2020, Hothi filed a defamation lawsuit claiming that Musk had incited online hatred by calling him a "liar," "murderer," and "terrorist." On the other hand, Musk argued that Hothi was making baseless claims and that the lawsuit should be dismissed as it infringed on freedom of expression.

However, the court did not accept this. Ultimately, Musk agreed to settle with Hothi, pay damages, and end the trial.

Tesla factory in California, USA [Image source=Yonhap News]

Hothi stated through his lawyer that the settlement proved his innocence, but Bloomberg reported that Musk and his legal representatives did not comment.

However, Tesla claimed via its official Twitter account, "Hothi accepted the offer under California Civil Procedure Code Section 998, and if he had not accepted it, he would have faced significant legal costs if he lost. This offer clearly denies Musk’s legal liability, and Hothi and his lawyers admitted defeat rather than victory."

Meanwhile, Bloomberg evaluated that it is a rare case for Musk, the world’s second-richest billionaire, to back down in a legal battle. Until now, Musk has tended to proceed with legal procedures to the end rather than settle lawsuits.

Musk recently won a lawsuit filed against him for misleading investors by tweeting in 2018 that he was "considering taking Tesla private," and he also won a defamation lawsuit after an argument with a British diving expert who participated in the 2019 Thai cave rescue.

This content was produced with the assistance of AI translation services.