Elon Musk has agreed to pay $10,000 to settle a defamation lawsuit brought by Randeep Hothi, a critic of Tesla Inc. Hothi, who gained a following on Twitter under the handle "Skabooshka," had accused Musk of smearing him with false allegations that he had menaced the electric car-maker's employees. Hothi's on-the-ground research of Tesla's production output caught the attention of several hedge funds. In 2019, Tesla sought a restraining order against Hothi over claims that he stalked its factory and harassed its employees. However, those allegations were denied by Hothi, and Tesla subsequently dropped its court complaint.
In 2020, Hothi filed a defamation suit against Musk, claiming that the CEO's public criticism of him triggered an online hate campaign in which he was accused of being "a liar, a murderer, a terrorist, and a deranged maniac." According to lawyers for Hothi, their client has accepted Musk's offer to settle the case, and a court filing on Monday indicated that Hothi is dropping the case. The terms of the settlement were not disclosed.
Hothi's monitoring of Tesla's production output using cameras and drones made him a hero to short sellers, who bet against the company's stock. Musk's settlement of the defamation lawsuit is a rare move for the CEO, who has a history of being combative with his critics. The settlement achieves Hothi's goal of clearing his name, and he has tweeted about being vindicated. Musk and his lawyers have yet to comment on the settlement.