Elon Musk says his social media posts didn't boost Tesla stock - Liberty

Saturday, November 4, 2023

Elon Musk says his social media posts didn't boost Tesla stock


Elon Musk in August. On Friday, he testified in federal court in San Francisco about his plans to take Tesla private in 2018. Carina Johansen/Agence France-Presse via Getty Images

Elon Musk testified on Friday that he knew he posted important information about Tesla, the electric car company he runs, on his Twitter account, but denied the social post to his media.

"Just because I tweet doesn't mean people will believe it or act on it," Musk said in a federal court in San Francisco.

In response to questions from lawyers representing investors who allege Musk suffered losses in Tesla shares after Musk discussed his 2018 proposal to take Tesla private, Musk issued the following statement: bottom. and Tesla.

Funds secured." The only reason this is still being determined is that it relies on shareholder votes. Tesla's stock skyrocketed after publishing these posts but fell as the deal didn't go ahead.

Superior District Court Judge Edward M. Chen, who is overseeing the case, has already ruled that Musk's "funds secured" tweet and a second Twitter statement are untrue. there is are doing. However, a jury will have to determine whether these statements have resulted in losses for investors.

Mr. Musk arrived in a courtroom filled with lawyers, reporters, people interested in the case, and Mr. Musk. A group of what appeared to be Mr. Musk's security guards whispered to court officials and stood at the door of the room before Mr. Musk entered.

Musk has acknowledged that his Twitter posts comply with US Securities and Exchange Commission rules, but Tesla said his S.H.I.E.L.D.

"Character limits cannot be ignored and everyone on Twitter is aware of character limits," he said, referring to the character limit in tweets.

Musk will testify for about 30 minutes on Friday afternoon and return on Monday to answer more questions. He nodded to the jury as he left the courtroom.

In an opening statement Wednesday, the investor's lawyers claimed Musk knew Tesla was far from going private and lied about how he explained the proposal. They said investors decided because they believed Musk's post was actual.

“For the stock market to function properly and fairly, it needs accurate and reliable information,” said investor attorney Nicholas Porritt. Otherwise, "people will not be able to invest or save for their future or retirement," he added.

But Musk and Tesla's lawyers aren't lying by saying that the CEO is considering taking Tesla private and that people have invested in the company and considered it. claimed. Plans to take Tesla private fell apart, not because Musk was able to secure funding, but because he could not get approval from shareholders.

Musk's attorney, Alex Spiro, said his client may have picked the wrong word, but he's serious about keeping the company private. Jim Wilson

Alex Spiro, lead attorney for Musk and Tesla's legal team, said, referring to the word "considering," "the core of what he's saying is the truth." "It wasn't reckless to assume he could get the money. He was reckless to use the wrong word."

Spiro also said Musk made a "snapshot decision" to post a tweet about taking Tesla private following reports that Saudi Arabia's Public Investment Fund had bought Tesla shares. No funding has been secured, Spiro added. Lawyers for Mr. Musk and Mr. Tesla tried to coerce Saudi officials to testify, but last week abandoned their efforts.

In 2018, Musk and Tesla settled another of his lawsuits with the SEC. About his plan to take Tesla private. They paid the SEC a fine, Mr. Musk stepped down as the automaker's chairman, and Mr. Musk agreed to allow lawyers to review certain statements about the company before posting information on social media.

Musk also acknowledged that colleagues and friends, including then-Tesla board member Antonio Gracias, suggested he shut down Twitter in July 2018. Tesla struggled to ramp up production of its most affordable Model 3. "Pedo guy".

When asked if he listened to their advice, Musk replied:

His posts were closely followed and analyzed by investors and others interested in the company and electric vehicles.

On the witness stand, Glen Littleton, one of his investors and plaintiffs, said Wednesday that Musk's initial statement on his Twitter account about taking the company private appears conclusive. I was. He started options trading.

Mr. Littleton, 71, said Tesla's going private "almost wiped me out".

Another investor and plaintiff in the lawsuit, Timothy Fries, testified Friday that Musk's initial tweet appeared to represent an excellent opportunity to invest in Tesla. He bought stock in the company the next day.

"He didn't want to buy the stock until he saw the tweet," Fries said. He believed the deal was still in negotiations, but Musk's post said it had "a committed party and its funding is under scrutiny."

The trial began less than three months after Musk bought Twitter and fired most of the company's employees. He also diverted content from the media to the platform and changed the rules to shun many and some users who have had their accounts suspended in the past, including former President Donald J. Trump. It was resurrected. I came

Musk's team moved the case to Tesla's hometown of Austin, Texas, arguing that he failed to get a fair trial in San Francisco after the Twitter hijack was reported in local news. Judge Chen dismissed the claim.

At Tuesday's jury selection, some jurors occasionally wrote social media posts describing Mr. Musk as "not necessarily likable," "arrogantly rich," and "underinformed." I explained that I was male. No jurors were selected.

Instead, it will be decided by her two female and seven male jurors. One of them called Mr. Musk a "quick mover." The "up-and-coming businessman" trial is expected to last about three weeks.