A US jury found that Tesla CEO Elon Musk and his company were not liable for misleading investors when he said in 2018 that he had funding secured to take the electric car company private.
The decision was important for Musk, who often takes to Twitter to voice his views, and plaintiffs had claimed billions in damages.
The jury came back with a unanimous verdict about two hours after beginning the deliberations.
Musk was not present in court when the verdict was read, but soon he said he was deeply appreciative of the jury's decision.
He said that wisdom of the people prevailed because of the wisdom of the people.
Nicholas Porritt, a lawyer for the investors, said in a statement: "We are disappointed with the verdict and are considering next steps." After the verdict, Tesla's shares rose by 1.6 per cent.
Dan Ives, Wedbush analyst Dan Ives said that a dark chapter is now closed for Musk and Tesla. Ives said that some Tesla investors feared that Musk might have to sell more Tesla stock if he lost.
The use of Twitter, the social media company he bought for US $44 billion in October, has created legal and regulatory headaches for the world's second-richest person.
Minor Myers, who teaches corporate law at the University of Connecticut and had previously called the investors case strong, called the outcome astounding. The US anti-securities fraud law has always been thought to be a great bulwark against falsehoods and misrepresentations he said.
He said that Musk was likely to double down on his communication tactics after the verdict because of this outcome, which makes you wonder if it is up to the job in modern markets.
Musk's attention has been divided between Tesla, SpaceX and now Twitter in the past few months. The social media company has taken over too much of his focus, according to Tesla investors.