International
Elon Musk takes stand in Tesla tweet fraud trial
January 23 | By AFP | Glenn Chapman |
Tesla CEO Elon Musk took the stand in a California fraud trial on Friday, accused of lying in tweets about taking the auto company private, punishing investors.
Musk was called to testify by lawyers for angry investors who accuse him of costing them millions of dollars in 2018 with untrue tweets about having funding secured to buy out shareholders at $420 a share.
The multi-billionaire’s tweets sent the Tesla share price on a rollercoaster ride and Musk was sued by shareholders who say the tycoon acted recklessly in an effort to squeeze investors who had bet against the company.
Musk, who bought Twitter itself in October, downplayed the power of his tweets noting under questioning that he once posted that he thought Tesla share price was too high, and “it went higher, which is counter-intuitive.”
“What I’m trying to say is that the causal relationship is clearly not there simply because of a tweet,” Musk said in a testimony that lasted only thirty minutes and was to be continued on Monday.
The hearing on Friday began with Harvard law and business professor Guhan Subramanian, who was called as an expert witness by the plaintiffs.
He called Musk’s tweeted proposal to take Tesla private as “illusory” and “just wrong” in how it deviated wildly from the way such mega-deals usually take place.
“All I can say is this is just wrong; as a matter of deal process… this isn’t correct,” Subramanian said while being questioned by a defense lawyer about Musk’s tweets.
‘Reckless’ words
Testimonies in the trial opened Wednesday with a lawyer for the upset investors telling jurors Musk lied about having funding in place.
Nicholas Porritt, who represents lead plaintiff Glen Littleton and other Tesla investors, said the tweets cost “regular people” to lose “millions and millions of dollars.”
Called as the first witness, 71-year-old Littleton told jurors he was heavily invested in Tesla in 2018 in a way that banked on the share price climbing to $500 or more.
Littleton testified that he was “pretty shocked” by Musk’s tweet about taking the company private at $420 a share because it threatened almost all the money he had invested in Tesla.
“It was going to pretty much wipe me out,” Littleton said.
Littleton told jurors he scrambled to save what he could of his investments, getting out of most of his positions at a huge loss.
Musk is expected to continue testifying at trial on Monday, when his lawyers will get a chance to refute the accusation that he was being deceitful.
The case revolves around a pair of tweets in which Musk said “funding secured” for a project to buy out the publicly traded electric automaker, then in a second tweet added that “investor support is confirmed.”
Porritt told jurors that Musk had selected the $420 share price in the tweet “as a joke” and that the funding to take Tesla private was never locked in, nor credibly pursued.
In his own opening remarks, Musk attorney Alex Spiro said that even though the tweets may have been a “reckless choice of words”, they were “not fraud, not even close.”
The fraud trial is expected to last three weeks.
International
Tensions Escalate in Middle East as U.S. Bombs Iran After Maritime Attacks
The United States launched new strikes against Iran on Wednesday, following President Donald Trump’s warning that Washington would “hit hard” against the Islamic Republic. While Trump ordered the retaliation after attacks on vessels in the Strait of Hormuz, he also said he hoped the latest wave of bombings would end soon and left the door open for renewed negotiations.
U.S. forces “have begun carrying out additional strikes against Iran to further reduce its ability to threaten freedom of navigation in the Strait of Hormuz,” the United States Central Command said in a post on X.
Washington blamed Iran for what it described as “recent unjustified aggression against commercial shipping.”
Iran’s state news agency IRNA reported that explosions were heard in the port cities of Bandar Abbas, Konarak, and Chabahar.
“This is in retaliation for yesterday’s bombing of ships by Iran. If it happens again, it will be much worse,” Trump wrote on social media alongside an image showing what appeared to be a bombing at an Iranian location.
Before ordering the strikes, the U.S. president said that the ceasefire with Iran had ended. Mediators Pakistan and Qatar called for de-escalation, while the United Nations also urged both sides to reduce tensions.
The Strait of Hormuz remains a critical flashpoint in the Middle East conflict, which began in late February after U.S. and Israeli strikes that killed Iran’s Supreme Leader Ali Khamenei.
Iran-linked attacks on at least three vessels in recent days triggered a U.S. offensive against Iranian targets on Tuesday. Tehran responded by launching attacks against Gulf countries that are allies of Washington.
International
Deadly Drug Trade Rivalry Suspected After Eight Bodies Discovered in Southern Mexico
Eight bodies were found Wednesday along a highway in the southern Mexican state of Chiapas, near the border with Guatemala, in an incident authorities believe may be linked to a dispute over local drug sales.
The victims — six men and two women — were found abandoned on a road in a mountainous area of the municipality of El Bosque, according to the state prosecutor’s office in a statement published on Facebook.
Initial investigations indicate that the killings may be connected to “a dispute over retail drug sales between local criminal groups operating in the region,” the prosecutor’s office said.
Local media reports that several criminal incidents have increased in the area since the beginning of the year.
The road where the bodies were discovered is located in a mountainous region largely inhabited by Indigenous communities. Authorities have not released further details about the victims or possible suspects as the investigation continues.
Central America
Regional Naval Operations Strike Drug Cartels, Disrupting Cocaine and Weapons Trafficking Routes
Transnational operations carried out by regional naval forces, including El Salvador’s National Navy, the United States Coast Guard, and Mexico’s Secretariat of the Navy (SEMAR), have dealt significant blows to international drug trafficking organizations.
The operations have not only led to the seizure of massive cocaine shipments, such as the 6.68 metric tons of cocaine valued at approximately $167 million presented last Wednesday by El Salvador’s Security Cabinet, but have also resulted in the confiscation of high-powered weapons allegedly intended as payment to criminal organizations, according to Security Minister Gustavo Villatoro.
“Based on the strength of the data, not just the narratives, we can state that our National Navy has documented the only known operation in the Pacific Ocean in which a criminal organization from the south was transporting drugs and exchanging them with a group from the north for firearms,” Villatoro said.
The exchange of weapons for drugs between criminal groups in the Pacific Ocean represents a logistical method in which South American cartels from countries such as Colombia and Ecuador negotiate with Mexican and Central American organizations to trade military-grade weapons for cocaine shipments.
Regional naval authorities have identified that meeting points located farther from the coastline in international waters make it easier for armed groups to receive supplies and carry out exchanges undetected. As a result, El Salvador’s National Navy deploys teams from the Trident Naval Task Force (FTNT) aboard maritime patrol vessels to intercept these operations.
Initially, the patrol units are ordered to travel up to 200 nautical miles offshore, but later receive instructions from the Maritime Operations Center to extend their missions beyond 1,000 nautical miles, reaching coordinates used by drug trafficking vessels operating in the open sea.
“We cannot lose focus on the routes these criminal organizations use to move drugs,” Minister Villatoro said, emphasizing the importance of maintaining surveillance over the various maritime corridors used for narcotics trafficking.
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