Elon Musk, 51, returned to the witness box for a third day in a lawsuit brought by Tesla investors who claim he misled them with tweets about a buyout that never happened. Musk claims his intent was to let investors know he was considering a buyout, not promising one would happen. Under questioning by his lawyer, Alex Spiro, Musk maintained he had financial backing for a 72 billion dollar buyout of Tesla from Saudi Arabia’s Public Investment Fund, although he admitted no specific funding amount or price was discussed.
Musk became combative and indignant at times, insisting he did not promise a deal would happen and had no ill motive. He claimed he was simply trying to get the word out to investors that Tesla might be poised to end its run as a publicly held company. The billionaire entrepreneur pointed to his 30-year track record of successfully raising money from ventures including PayPal, Neuralink, Tesla, and SpaceX, saying “it’s not a problem for me to raise money.”
Despite the claims of financial backing, Musk was presented with texts and emails indicating that a representative for the Saudi fund had never pledged the money for a full buyout of Tesla. Musk dismissed these as the words of someone trying to back-pedal from a previous pledge made in private conversations. He also expressed contempt for the lawyers who sued on behalf of Tesla shareholders, claiming they did not actually represent shareholders. The judge in the case, US District Judge Edward Chen, ordered the remark stricken from the record.
Elon Musk (Via Elon Musk/Twitter)
The lawsuit claims Musk’s tweets damaged Tesla shareholders during a 10-day period leading up to his admission that the buyout he envisioned was not going to happen. Musk’s tweets resulted in a 40 million dollar settlement with securities regulators, with Musk claiming he entered into the settlement under duress. The trial hinges on whether Musk’s tweets damaged Tesla shareholders, with the result being a 10-day decline in the company’s stock price.
Musk’s defense has focused on the fact that he never promised a deal would happen, and that his tweets were intended to provide transparency to investors about his plans for the company. However, the plaintiffs argue that Musk’s tweets were misleading and caused them to lose money as a result. The trial is ongoing, with a nine-person jury tasked with deciding whether Musk’s tweets damaged Tesla shareholders.
