During testimony Friday in the trial over 2018 tweets associated to the electrical car maker probably going personal, Tesla CEO Elon Musk defended his Twitter posts.
His testimony Friday got here after the trial kicked off in San Francisco earlier in the week. In the civil lawsuit, some Tesla shareholders alleged tweets Musk made in 2018 about presumably taking the firm personal have been deceptive and brought on them to lose cash.
While testifying Friday, Musk pushed again in opposition to there being a “causal relationship” between his tweets and the electrical car maker’s inventory worth.
“I believe you’re linking issues on Twitter to as the inventory costs once they’re not linked,” Musk stated. “That’s why I gave the instance, even when I say on Twitter that I believe the inventory worth is just too excessive, the inventory worth nonetheless goes increased.”
He additionally stated that Tesla’s share worth “goes up and down all the time” and that he doesn’t suppose “some tweet about one thing fully unrelated to Tesla goes to have an impact on the inventory worth.”
In regards to the brevity of tweets, Musk argued in his testimony that it was “deceptive” to “conflate deceptive with quick.”
He appeared to agree at one level that there have been situations the place Twitter’s character restrict might be limiting for offering particulars.
“I imply, there’s issues like, for instance, Tesla security blogs, whatnot, which have been prolonged and so, you realize, these are on our web site,” he stated.
“But, I imply, I’ve tweeted about Tesla security in tweets,” he instructed the lawyer. “The tweets are truthful. They’re merely quick. I believe you’re attempting to conflate deceptive with quick. That’s deceptive.”
Musk beforehand faced an investigation from the Securities and Exchange Commission (SEC) in connection to the August 2018 buyout tweets, considered one of which stated, “Am contemplating taking Tesla personal at $420. Funding secured.” The different stated that “investor assist is confirmed” and that the “solely purpose why this isn’t sure is that it’s contingent on a shareholder vote.” Ultimately, no buyout came about.
He settled the securities fraud fees from the SEC “with out admitting or denying” the allegations in September 2018, based on an SEC press release. The settlements included Tesla having to “put in place further controls and procedures to supervise Musk’s communications” and him and the firm being required to pay a collective $40 million in penalties, amongst different issues, the company stated at the time.
Tesla’s share price was buying and selling at about $133 on Friday, up about 23% from the starting of 2023 however down roughly 57% over the previous yr.