Trial against Elon Musk: the businessman denied that there is a relationship between his 2018 tweet and the real value of Tesla
Several investors are seeking compensation for a controversial Twitter message from Musk in which he claimed he had raised funds to take the company public, something that never materialized and lost them billions of dollars
Trial against Elon Musk: the businessman denied that there is a relationship between his 2018 tweet and the real value of Tesla. (AP)
Billionaire Elon Musk takes the stand in civil fraud lawsuitpromoted against him by Tesla investors who accuse him of million-dollar losses as a result of a tweet he published in 2018, and denied that there was a “causal relationship b>l” between his messages and the company's stock market value.
The CEO of Tesla and new owner of Twitter testified during the last 30 minutes of the fourth day of the trial in San Francisco (California, USA), mainly defending theutility of the social network to address its investors and reducing the impact of its messages on the price of the car company.
Musk, who was called to testify this Friday by his lawyers, recalled a similar case when in 2020, after tweeting “Tesla's stock price is too high”, the price fell rapidly but before from the close of the session it had recovered to exceed the opening price, according to CNN.
“The causal relationship is clearly not there just because of a tweet,” he added.
He also indicated that, between 2017 and In 2019, Tesla faced pressure from short sellers – who bet on a company going public – and called their practices “evil” and enabling “bad people.” on Wall Street steal money from small investors”, collects Forbes.
The top executive of Tesla and the new owner of Twitter testified for the last 30 minutes of the fourth day of the trial in San Francisco (California, USA), mainly defending the usefulness of the social network to address its investors and downplaying the impact of its messages about the price of the car company. (REUTERS)
In the trial, which will last about three weeks and continues on Monday with testimony from Musk, several investors are seeking compensation for a controversial 2018 tweet in the that the defendant said he had raised funds to take the company public, which never materialized.
“I'm considering taking Tesla public at $420. Secured financing”, the message said, in which Musk referred to the price per share that he could offer in the operation and that would have meant a valuation of the company at around 72,000 million dollars .
The plaintiffs accuse Musk of lying about the alleged funding and claim that the message caused Tesla's price swings that cost them billions of dollars. dollars.
The businessman's defense argued that his intention was not to deceive anyone, but to offer maximum transparency, although he acknowledges that he communicated hastily and chose the wrong words.
However, Musk and Tesla -who is also accused- start at a disadvantage, since the judge in charge of the case, Edward Chen, already considered proven last year that the tweet in question and others that he published later were “false and misleadings.”
The plaintiffs accuse Musk of lying about the alleged funding and claim the message caused Tesla's price swings that cost them billions of dollars. (REUTERS)
In addition, in 2018 Musk was accused by the US Securities and Exchange Commission (SEC) of fraud for his publication in Twitter and the businessman accepted as a sanction a fine of 20 million dollars and leave for at least three years as president of the company's board of directors, although he continued to be its CEO.
(With information from EFE)