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
Missile attack hits Kharkiv homes, leaving 13 wounded
Ukrainian President Volodymyr Zelensky said on Friday that a Russian missile attack on residential buildings in the eastern city of Kharkiv has left at least 13 people injured, according to local authorities.
“A horrific Russian attack on Kharkiv,” Zelensky wrote on Telegram, explaining that two missiles were fired, striking residential areas and causing “a number of casualties that is still being clarified.”
Local officials later confirmed that 13 people were injured in the attack, six of whom were hospitalized, including one woman in serious condition.
International
Sheinbaum evacuates National Palace after 6.5-magnitude earthquake hits Southern Mexico
Mexican President Claudia Sheinbaum Pardo evacuated the National Palace on Friday along with journalists and federal government staff after the seismic alert was activated during her morning press conference, triggered by a 6.5-magnitude earthquake with its epicenter in the south of the country.
The alert sounded while the president was speaking from the Treasury Hall, forcing the immediate interruption of the event and the activation of established safety protocols.
“Oh, it’s shaking,” Sheinbaum said as she noticed the tremor, before urging those present to remain calm.
According to preliminary information, the earthquake struck the state of Guerrero, one of Mexico’s most seismically active regions. The National Seismological Service (SSN) reported that the quake occurred at 7:58 a.m. local time (13:58 GMT).
Sheinbaum led the orderly evacuation of the historic building, accompanied by reporters covering the briefing and federal government personnel. Images released afterward show the president waiting in the central courtyard of the National Palace as she awaited guidance from Civil Protection authorities on whether it was safe to resume activities.
International
Canada’s prime minister Mark Carney to join Ukraine peace talks in Paris
Canadian Prime Minister Mark Carney announced on Friday that he will take part in peace negotiations on Ukrainescheduled to be held in Paris on January 5 and 6.
In a statement, the Canadian government said the meeting will bring together countries belonging to the so-called Coalition of the Willing, and aims to “accelerate efforts toward a negotiated peace” in the conflict between Russia and Ukraine, supported by robust security guarantees.
Carney said Canada is working closely with its allies to achieve a “just and lasting peace,” stressing that the Coalition of the Willing must both deter further aggression and reinforce security guarantees, while ensuring that Ukraine is able to rebuild, recover and lay the foundations for genuine prosperity.
The Coalition of the Willing is made up of around 30 countries, the vast majority of them European, all of which are allies of Kyiv.
On Thursday, Ukrainian President Volodymyr Zelensky confirmed that a meeting of the Coalition, alongside other European leaders, will take place in Paris on January 6, focusing on security guarantees for Ukraine in the event of a future peace agreement with Russia.
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