Reuters, San Francisco
Sat, Jan 21, 2023 08:45 Last updated: Sat, Jan 21, 2023 09:15
Elon Musk.Reuters file photo
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Elon Musk.Reuters file photo
Tesla (TSLA.O) Chief Executive Elon Musk testified Friday that investors don’t always respond to his Twitter messages the way he expects, keeping the electric car maker private. defended in a fraud trial against him tweeting in 2018 about funds to .
Musk’s testimony began with questions about his use of Twitter, a social media platform he purchased in October. He said it was the most democratic way of communicating, but said his tweets didn’t necessarily affect Tesla stock the way he hoped.
Follow the Daily Star’s Google News channel for all the latest news. “Just because I tweet something doesn’t mean people will believe it or act on it,” Musk told a jury in San Francisco federal court.
Musk gave testimony in less than 30 minutes before the court was adjourned to Monday, tweeting in 2018 that he was considering taking Tesla private and that he had “secured funding.” was not asked.
He is expected to explain why he claimed to have had Saudi investors help him take Tesla private, but this never came to pass.
The case is a rare securities class action trial in which plaintiffs have already cleared a high legal hurdle, with U.S. Judge Edward Chen last year ruling that Musk’s funding was false and reckless. got down.
Shareholders allege that Musk lied when he sent the tweets, costing investors millions of dollars.
Dressed in a dark suit over a white button-down shirt, Musk spoke calmly and at times with a bewildered look, in contrast to his sometimes belligerent testimony at past trials.
Musk explained the difficulties the company experienced around the time he sent out the “Funds Secured” tweet.
“Wall Street’s shark pack wanted Tesla dead very badly,” he said, explaining the short-selling to profit when stocks plummeted.
He said short sellers should plant false narratives and make the practice illegal.
Tesla’s stock closed about 5% higher at $133.42.
Earlier Friday, Tesla investor Timothy Fries told jurors that he lost $5,000 by buying Tesla stock after Musk sent the tweet.
Mr. Fries said that “funding was secured” means that “some scrutiny, critical review of those funding sources has taken place.”
Musk’s attorney, Alex Spiro, told jurors in his opening statement Wednesday that Musk believes it is funded by Saudi backers and is taking steps to complete the deal. Fearing media leaks, Musk tried to protect “everyday shareholders” by sending out tweets containing “technical inaccuracies,” Spiro said.
Harvard Law School professor Guhan Subramanian told jurors that Musk’s actions in 2018 were “unprecedented” and “inconsistent” in terms of structuring corporate deals. Told.
A jury of six men and three women will decide whether, and if so, how much, the tweet artificially inflated Tesla’s share price by highlighting the financing of the deal. .
Defendants include current and former Tesla directors, who Spiro said had “pure” motives in their reaction to Musk’s plan.
