Tesla CEO and Twitter’s new owner testified for the last 30 minutes of the fourth day of the trial in San Francisco (California, USA), defending the utility of the social network mainly for addressing its investors and your messages Underestimating the effect of Car company stock.
Musk, called by his lawyers to testify this Friday, recalled a similar case in 2020 when, after tweeting “Tesla’s stock price is too high”, the price fell sharply, but at the end of the session before it had exceeded the opening price, according to CNN.
“The causal relationship is clearly not just because of one tweet,” he added.
He also gave her time to reflect on how, between 2017 and 2019, Tesla faced pressure from short sellers — those who bet on a company’s collapse in the stock market — and their practices were described as “evil” and “wallah”. Labeled as a facility for the bad guys on the street”. Steal money from small investors, says Forbes.
In the trial, which is expected to last about three weeks and continues with testimony from Musk on Monday, several investors are seeking compensation for a controversial 2018 tweet in which the defendant said he raised money to take the company public was, something that never materialized.
“I am considering taking Tesla public at $420. Financing is secured,” said the message, in which Musk referred to the per-share price he could offer at the operation and that meant around $72,000 million. Company will be evaluated.
The plaintiffs accuse Musk of lying about the alleged wealth and claim that the message caused Tesla’s price to change, costing him billions of dollars.
The businessman’s defense has argued that his intention was not to defraud anyone, but to provide maximum transparency, although he admits that he communicated in haste and chose the wrong words.
However, Musk and Tesla — who are also accused — start at a disadvantage, as Edward Chen, the judge in charge of the case, already proved last year that the tweets in question and others he published later were “false and false.” were misleading”. ,
Furthermore, already in 2018 Musk was charged with fraud by the US Securities and Exchange Commission (SEC) for his publication on Twitter and the businessman accepted a $20 million fine and stepped down as president. I was abandoned for at least three years. The company’s board of directors, although he remained its CEO.