Elon Musk, Tesla Inc’s chief executive, testified on Tuesday that he intended to inform and not deceive shareholders when he tweeted in 2018 that he had funding lined up to take the electric car maker private, which shareholders allege was a lie.
Musk is defending against claims he defrauded investors by tweeting on August 7, 2018, that he had “funding secured” to take Tesla private at $420 per share, and that “investor support is confirmed.”
He testified on Tuesday in response to questions from his lawyer Alex Spiro that he intended to share information about his interest in taking Tesla private with all investors after it had already been given to an exclusive few.
Musk said he had already discussed his interest with the Tesla board and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, and he feared it would leak to the media.
“I had no ill motive,” he said. “My intent here was to do the right thing for shareholders.”
He has testified that he chose not to take Tesla private due to a lack of support from some investors and a wish to avoid a lengthy process.
Musk returned to the stand on Tuesday after about five hours on Monday and an appearance on Friday.
The trial tests whether the world’s second-richest person can be held liable for his sometimes rash use of Twitter.
Tesla’s stock surged after Musk’s 2018 tweet about the $420 per share price, which was a premium of about 23% to the prior day’s close, only to fall as it became clear the buyout would not happen. Investors say they lost millions of dollars as a result.
A jury of nine will decide whether the Tesla CEO artificially inflated the company’s share price by touting the buyout’s prospects, and if so by how much.
Musk has testified that it was his “opinion” that funding was secured.
On Monday, Musk said he could have financed the deal by selling his stake in SpaceX, the aerospace company where he is also chief executive officer.
In addition, Musk testified on Monday that he met on July 31, 2018, with representatives of the Public Investment Fund at Tesla’s factory in Fremont, California.
He acknowledged that a takeover price was not discussed, but said the Saudi representatives made clear they would do what it took to make a buyout happen.
Musk said the fund’s governor, Yasir Al-Rumayyan, later backpedaled on the commitment to take Tesla private.
Lawyers for Al-Rumayyan did not return a request for comment.
Source: SABC News (sabcnews.com)