Elon Musk takes witness stand to defend Tesla buyout tweets
San Francisco (AP): Elon Musk took the witness stand to defend a 2018 tweet claiming he had lined up the financing to take Tesla private in a deal that never came close to happening.
The tweet resulted in a USD 40 million settlement with securities regulators. It also led to a class-action lawsuit alleging he misled investors, pulling him into court Friday.
The mercurial billionaire took the witness stand wearing a dark suit on the third day of a civil trial in San Francisco that his lawyer unsuccessfully tried to move to Texas, where Tesla is now headquartered, on the premise that media coverage of his tumultuous takeover of Twitter had tainted the jury pool.
The nine-person jury assembled earlier this week will be responsible for deciding whether a pair of tweets that Musk posted on August 7, 2018 damaged Tesla shareholders during a 10-day period leading up to a Musk admission that the buyout he had envisioned wasn't going to happen.
A month later, Musk stepped down as Tesla's chairman while remaining CEO as part of the Securities and Exchange Commission settlement without acknowledging any wrongdoing.
In the first of those two 2018 tweets, Musk stated "funding secured" for a what would have been a USD 72 billion buyout of Tesla at a time when the electric automaker was still grappling with production problems and was worth far less than it is now. Musk followed up a few hours later with another tweet suggesting a deal was imminent.
On the stand Friday, Musk who last year bought Twitter for USD 44 billion said tweeting is the "most democratic way" to communicate with investors.
"I care a great deal about retail investors," he said during questioning by shareholder attorney Nicholas Porritt.
But he acknowledged that investors can get more detail in a traditional corporate filing with securities regulators, given the character limits set on Twitter.
"I think you can absolutely be truthful" on Twitter, Musk said. "But can you be comprehensive? Of course not."
Even before Musk took the stand, US District Judge Edward Chen had declared that the jurors can consider those two tweets to be falsehoods, leaving them to decide whether Musk deliberately deceived investors and whether his statements saddled them with losses.
Musk has previously contended he entered into the SEC settlement under duress and maintained he believed he had locked up financial backing for a Tesla buyout during meetings with representatives from Saudi Arabia's Public Investment Fund.
The trial over his Tesla tweets comes at a time when he has been focusing on Twitter, which he acquired in October after trying to back out of that purchase.
Musk's leadership of Twitter where he has gutted the staff and alienated users and advertisers has proven unpopular among Tesla's current stockholders, who are worried he has been devoting less time steering the automaker at a time of intensifying competition.
Those concerns contributed to a 65 per cent decline in Tesla's stock last year that wiped out more than USD 700 billion in shareholder wealth far more than the USD 14 billion swing in fortune that occurred between the company's high and low stock prices during the August 7-17, 2018 period covered in the class-action lawsuit.
Tesla's stock has split twice since then, making the USD 420 buyout price cited in his 2018 tweet worth USD 28 on adjusted basis now. The company's shares were trading around USD 133 Friday, down from the company's November 2021 split-adjusted peak of USD 414.50.
After Musk dropped the idea of a Tesla buyout, the company overcame its production problems, resulting in a rapid upturn in car sales that caused its stock to soar and minted Musk as the world's richest person until he bought Twitter. Musk dropped from the top spot on the wealth list after the stock market's backlash to his handling of Twitter.
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I wouldn't have been close to what I am now if it wasn't for Vishy sir: Gukesh
Chennai (PTI): Indian chess prodigy D Gukesh on Thursday thanked the legendary Viswanathan Anand for playing a huge role in shaping his career, saying "I wouldn't have been close to what I am now if it wasn't for him".
The 17-year-old Grandmaster scripted history on Monday by winning the Candidates Chess Tournament in Toronto to become the youngest ever challenger to the world title, beating a record created by the legendary Garry Kasparov 40 years ago.
The triumph paved the way for Gukesh's clash against reigning world champion Ding Liren of China later this year.
"Vishy sir has been a huge inspiration for me and I have heavily benefitted from his academy. I am truly grateful to him and wouldn't have been close to what I am now if it wasn't for him," Gukesh said at a press conference a few hours after his arrival here to a rousing reception from fans and schoolmates.
Gukesh has trained at the Westbridge-Anand Chess Academy which came into existence in 2020. Incidentally, before Gukesh, Anand was the only Indian to have won the Candidates, the last time being 2014.
Speaking about his much-anticipated clash against Liren, Gukesh said, "The biggest challenge against Ding would be how I prepare myself and being in the right state of mind since it will be a big match.
"There are a lot of expectations and a lot at stake. I have full belief in myself and will be going in with the same strategy. Hopefully, it will work out well."
The history-making teen was swamped by fans as he returned to an enthusiastic reception early this morning.
Hundreds of students from the Velammal Vidyalaya, the school where Gukesh studies, lined up at the airport at least one hour before his flight landed to greet him.
"I am happy to see what the victory meant to the country. I was delighted to see young kids full of energy and rooting for me the moment I landed in Chennai. It's truly special and means a lot to me," he said.
His mother Padma, who is a microbiologist, was at the airport to receive him. His father Rajinikanth had travelled with Gukesh to Toronto.
