Elon Musk says his SpaceX stock funded his plan to privatize Tesla

Elon Musk says his SpaceX stock funded his plan to privatize Tesla

Elon Musk says his SpaceX stock funded his plan to privatize Tesla

Elon Musk said he could have sold his SpaceX stock to take Tesla private as he returned to the witness stand to defend his 2018 “financially secure” tweets in a lawsuit filed by the automaker’s shareholders. After CNBC, Musk proclaimed, “SpaceX stock alone meant funding is self-secured. It’s not like I want to sell SpaceX stock, but I could have, and if you look at the Twitter transaction – I did. I sold Tesla shares to complete the Twitter transaction. And I would have done the same thing here.” However, he did not say how many of his shares he would have to sell to fund the transaction.

The plaintiffs’ lawsuit is based on Musk’s infamous 2018 tweets in which he said he’s considering “taking Tesla privately for $420.” He even said that he already “[f]Support secured.” Musk first took the stand in this particular case last week to defend himself against plaintiffs’ allegations that the tweets he created cost them significant financial losses. Tesla stock temporarily halted trading after those tweets and remained volatile in the weeks that followed. He said at the time, just because he tweeted something, “doesn’t mean people believe it or act on it.”

This time, Musk reiterated his earlier claim that he had reached an agreement with the Saudi Arabia Public Investment Fund to privatize Tesla. He told the court that the country “clearly” supported the transaction, which ultimately did not materialize. After Bloomberg, The court discussed his communications and eventual dispute with Saudi fund governor Yasir Al-Rumayyan regarding the deal. The jury was reportedly presented with an exchange of texts in which Musk accused Al-Rumayyan of backing out of their handshake agreement. The Saudi official responded that he did not have sufficient information to commit to the acquisition, calling Musk’s public announcement of their talks “ill-advised.”

The plaintiffs’ attorney also asked Musk what many of us are probably wondering: whether the $420 stock price in his tweets was made as a marijuana-related joke. Apparently it wasn’t a joke, and he chose it “because it reflected a premium of about 20 percent to Tesla’s stock price.” Musk is expected to testify again Tuesday, so we’ll likely hear more details about his failed bid to convert Tesla into a private entity.

When Bloomberg notes that the judge in that case had already determined that his tweets were “objectively false and reckless.” However, the plaintiffs have yet to prove that Musk knew his tweets were misleading and that his tweets caused their losses in order to win the case. Musk and Tesla previously had to pay the Securities and Exchange Commission $20 million each to settle a separate lawsuit over the same tweets, in which they accused him of making “false and misleading statements” that could be considered fraud. The CEO said on the booth that he told the SEC about SpaceX and that the plaintiff’s attorney “deliberately disqualifies.”[ed] that of juries.”

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