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
U.S. sanctions cuban president Díaz-Canel over regime crackdown on protesters
The United States announced on Friday, for the first time, sanctions against Cuban President Miguel Díaz-Canel, citing his role in the regime’s crackdown on the Cuban people as the country marks four years since the historic anti-government protests of July 2021.
The U.S. State Department imposed visa restrictions on Díaz-Canel and other key figures in the Cuban government, including Defense Minister Álvaro López Miera and Interior Minister Lázaro Alberto Álvarez Casas, according to Senator Marco Rubio, who shared the update on social media platform X.
“The United States is capable of imposing migration sanctions on revolutionary leaders and maintaining a prolonged and ruthless economic war against Cuba, but it will not break the will of our people or its leaders,” responded Cuban Foreign Minister Bruno Rodríguez.
In addition, the State Department added “Torre K”, a newly inaugurated 42-story hotel in central Havana, to its list of restricted entities in an effort to prevent U.S. dollars from funding repression by the Cuban regime.
The hotel has sparked criticism for representing a massive state investment in luxury infrastructure despite Cuba’s declining tourism sector and worsening shortages of food, medicine, water, and electricity.
“While the Cuban people suffer from shortages of food, water, medicine, and electricity, the regime squanders money,” wrote Rubio.
In another post, Rubio also accused the Cuban government of torturing dissident José Daniel Ferrer and demanded immediate proof of life.
Ferrer, leader of the Patriotic Union of Cuba (Unpacu), was among the 553 prisoners released in January as part of an agreement between Cuba and the Vatican, following a decision by former U.S. President Joe Biden to temporarily remove Cuba from the State Sponsors of Terrorism list.
However, Ferrer’s conditional release was revoked in late April, prompting strong protests from Washington. The island has since been returned to the terrorism list after Republican President Donald Trump’s return to power in January.
International
Two missing after torrential rains cause flooding in Catalonia
Two people are missing in Catalonia, northeastern Spain, after torrential rains hit the region on Saturday night, causing flooding and disrupting rail traffic for several hours.
“We are working on the search for two people in Cubelles,” announced the Catalan Fire Department in a message posted on social media platform X. Cubelles is a town of about 17,000 residents located 50 kilometers from Barcelona.
Emergency crews remain active in the affected area, where the heavy rains overwhelmed local infrastructure and forced temporary closures of several transport routes.
International
Trump administration begins downsizing ‘bloated’ state department workforce
The U.S. Department of State issued layoff notices on Friday to more than 1,300 employees both domestically and abroad, marking the start of a workforce reduction aimed at trimming what officials have called a “bloated” staff. The move is part of President Donald Trump’s broader effort to restructure the federal government.
According to local media reports, more than 1,100 Civil Service employees and around 250 Foreign Service officers received notifications via email. Those affected will be placed on administrative leave for periods ranging from 90 to 120 days from the date of their dismissal notice.
The job cuts are part of a plan to centralize and streamline the agency’s operations without disrupting its overall functioning. The restructuring was designed by Secretary of State Marco Rubio, who had previously informed Congress in May of his intention to reduce the department’s workforce by 15%. The State Department currently employs about 18,000 people.
According to the top U.S. diplomat, the goal is to optimize what he described as a “bloated bureaucracy that stifles innovation and misallocates scarce resources,” as well as to eliminate remnants of “radical political ideology.”
The reorganization is expected to hit hardest in offices focused on human rights and refugee issues, which will now be handled by regional bureaus, according to The New York Times.
“We inherited a system that needed reform, and we are delivering it,” said State Department spokesperson Tammy Bruce on Thursday, adding that the Administration is committed to a foreign policy that puts U.S. interests first.
U.S. sanctions cuban president Díaz-Canel over regime crackdown on protesters
Two missing after torrential rains cause flooding in Catalonia
Trump administration begins downsizing ‘bloated’ state department workforce
Tec de Monterrey honors one of its students for his contribution to nanotechnology in medicine
Defense Minister commends salvadoran soldier for Central American Cross Country victory
Extension of the state of emergency approved in southern Chile
-
International4 days agoCuba confirms 76 femicide cases in 2024, among highest rates in region
-
Central America4 days agoIllegal crossings at U.S.-Mexico border plunge 92% in historic shift
-
International4 days agoU.S. thanks Mexico for sending rescue teams after deadly Texas floods
-
Central America4 days agoCosta Rica extends humanitarian status and grants work permits to stranded migrants
-
Central America3 days agoDengue crisis in Panama: co-circulating serotypes fuel rise in fatal cases
-
International4 days agoMexico launches probe into alleged $25 million bribe to ex-president Peña Nieto
-
International3 days agoICE set to become America’s largest security force under Trump’s $75B immigration overhaul
-
Central America3 days agoGuatemala hit by over 300 quakes; death toll rises to seven
-
International3 days agoHarvard faces Federal pressure over immigration docs, autonomy dispute intensifies
-
International4 days agoTrump and Bondi slam Epstein inquiry amid Texas flood tragedy
-
Central America3 days agoU.S. revokes visas of top Costa Rican lawmakers and constitutional judge
-
International3 days agoGerman parliament orders removal of LGBTQ+ flags amid growing controversy
-
International2 days agoSheinbaum slams ICE raids after 355 mexicans detained and 67,000 repatriated
-
International3 days agoUK and France seal innovative migrant exchange deal to curb channel crossings
-
International3 days agoCDC reports record measles outbreaks in 39 U.S. jurisdictions this year
-
International3 days agoFederal judge halts Trump’s order to end birthright citizenship
-
International2 days ago
Trump defends Bolsonaro, hints at talks with Brazil after tariff warning
-
International3 days agoUkraine gains $10 billion in commitments during Rome Recovery Forum
-
International2 days agoTrump administration begins downsizing ‘bloated’ state department workforce
-
International3 days agoSix agents penalized for conduct failures in July 2024 attack on Donald Trump
-
International4 hours agoTwo missing after torrential rains cause flooding in Catalonia
-
International4 hours agoU.S. sanctions cuban president Díaz-Canel over regime crackdown on protesters