Elon Musk admitted in court on Monday that he wanted Tesla shareholders to rely on his infamous 2018 tweet that he had “secured funding” to take the automaker private, despite his repeated attempts to say he believed only that he could secure the money.
Why is this important: One of the questions the jury is tasked with deciding is whether the Tesla CEO’s tweets were material, meaning material information that could affect investor decisions.
Catch up fast: The Tesla CEO is being sued by investors for his 2018 fake tweet that he secured funding to take the company private.
- The trial began last week with two, with Musk beginning his testimony at the end of Friday’s proceedings after two investors and an expert spoke.
- On Friday, he argued that “it’s hard to tell the stock price is tied to a tweet” when it comes to posting tweets as official company communications, adding that sometimes, the stock performed surprisingly.
What he says : “I expected there to be [would] probably a rise in the stock price – seems likely,” he said, according to the Financial Times.
- “If you say you’re considering privatizing a company or acquiring one, … there will be a premium.”
The big picture: Musk also testified that he posted the tweet because he was worried the Financial Times would release information about his plans and wanted all Tesla shareholders to know he was considering the deal.
- He also said that following his conversations with representatives of the Saudi sovereign wealth fund, he believed they had committed to invest in a privatization transaction.