Saturday, February 4, 2023

Elon Musk appears in trial against him for Tesla tweet fraud

Tesla CEO Elon Musk took the bench on Friday in his fraud trial in the state of California, alleging lying in tweets about the electric car company’s sales and making it public, punishing investors.

Musk took the stand as called upon by lawyers for investors who accused him of costing him millions of dollars in 2018 for his “false” tweets about raising funds to pay $420 per share to shareholders.

Those tweets sent Tesla’s share price on a rollercoaster ride, with shareholders accusing it of acting recklessly in an effort to squeeze out investors who had bet against the company.

Musk, who bought Twitter in October, downplayed the power of his tweets, noting that he once posted that he thought Tesla’s stock price was overpriced and “went higher, which is counterproductive.” ”

“What I’m trying to say clearly doesn’t exist because of just one tweet,” Musk said in the testimony.

Testimony in the trial began on Wednesday.

Nicholas Porritt, who represents lead plaintiff Glen Littleton and other Tesla investors, said the tweets caused “millions and millions of dollars” in damages to “regular people.”

The 71-year-old Littleton, who was called as the first witness, said he had invested heavily in Tesla in 2018, expecting the share price to rise to $500 or more.

Littleton said he was “quite surprised” by Musk’s tweet about acquiring the company at $420 a share because it put almost all the money he had invested in Tesla at risk.

The trial is expected to last about three weeks.

Nation World News Desk
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