Subscribe to our newsletter to stay updated on news from around the world
Elon Musk took the witness stand in San Francisco, in the trial that sees him accused of defrauding investors for having tweeted, more than 4 years ago, about his intentions to take Tesla public. Musk spent half an hour defending his Twitter communications and his accomplishments as head of the auto company. His testimony will continue on Monday.
The facts of 2018
The lawsuit against the electric-car patron over his twittering was initiated by a shareholder who claimed Musk lacked the funds to delist Tesla and acted recklessly by discussing the plan that was perhaps only in its infancy. Specifically, under accusation are the tweets with which in August 2018 Musk had guaranteed the financial coverage for the privatization of Tesla with a valuation of 420 dollars per share, and revealed that “investor support” for the deal had been “confirmed”.
What happened to Wall Street
The trading of securities on Wall Street had been blocked immediately after the release of Musk’s posts, who now has to answer in court for his behavior, given that the scenario presented by the billionaire had not then occurred. But after the disputed tweets and the initial pause, stock trading had resumed for a reported $350 million. It is on this that the debate focuses.