International

Elon Musk takes stand in Tesla tweet fraud trial

Photo: Reuters

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.”

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“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.

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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.

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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.

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International

Bogotá and Quito Seek Dialogue After Tariffs and Power Cut Escalate Tensions

Bogotá and Quito will hold an emergency bilateral summit next week amid recent developments that have strained relations between the two countries.

Tensions escalated this week after Ecuadorian President Daniel Noboa unexpectedly announced a 30% tariff on Colombian imports. Colombia responded with a reciprocal measure, imposing the same tariff on around 20 Ecuadorian products and suspending electricity exports to Ecuador.

Aware that electricity imports are critical to easing Ecuador’s recent energy crises, Quito further imposed a 30% tariff on the transportation of Colombian oil through its territory.

However, recent statements from the Ecuadorian government suggest that dialogue between the two sides has intensified in recent hours. Ecuador’s Minister of Foreign Affairs, Gabriela Sommerfeld, confirmed that active conversations are under way.

In Colombia, segments of the business sector have welcomed the prospect of negotiations. The National Business Council (Consejo Gremial Nacional, CGN), for instance, urged both governments to restore commercial relations, warning that the dispute “puts jobs and regional economic stability at risk.”

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International

Trump-Era Defense Plan Prioritizes Border Security and Scales Back Global Commitments

The U.S. military will prioritize the defense of the homeland and the deterrence of China, while providing more limited support to its allies and elevating Latin America as a key focus of its agenda, according to a Pentagon strategic document released on Friday.

The 2026 National Defense Strategy (NDS) represents a significant shift from previous Pentagon policies, both in its emphasis on allies assuming greater responsibility with reduced backing from Washington and in its more moderate tone toward traditional adversaries such as China and Russia.

“As U.S. forces focus on defending the homeland and the Indo-Pacific, allies and partners elsewhere will assume primary responsibility for their own defense, with crucial but more limited support from U.S. forces,” the document states.

The previous defense strategy, published during President Joe Biden’s administration, described China as Washington’s most consequential challenge and characterized Russia as an “acute threat.”

The new strategy, however, calls for maintaining “respectful relations” with Beijing and makes no reference to Taiwan, the democratically governed island claimed by China and allied with the United States. It also describes the threat posed by Russia as “persistent but manageable,” particularly affecting NATO’s eastern members.

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While both the Biden-era strategy and the Trump administration’s approach emphasize the importance of defending U.S. territory, they differ significantly in their assessment of the challenges facing the country.

The Trump administration’s NDS sharply criticizes the previous government for neglecting border security, arguing that this failure led to an “influx of illegal immigrants” and widespread narcotics trafficking.

International

Guatemala considers sending high-risk gang members to military prisons

Amid the escalating crisis in Guatemala’s prison system, the government is considering transferring high-risk gang members to military-run detention facilities, a move that analysts say could help address overcrowding and the lack of control in civilian prisons.

The debate has gained urgency following the killing of ten police officers by gang members, reportedly in retaliation after the government refused to meet demands made by Aldo Dupie Ochoa, alias “El Lobo,” leader of the Barrio 18 gang, which authorities identified as responsible for the attack.

Guatemala’s Minister of Defense, Henry David Sáenz, told local media that the possibility of relocating high-danger inmates to military brigades has not been formally discussed. However, he noted that the practice is not new to the Armed Forces and said it is something that “was already being done.”

One example is the detention center located within the Mariscal Zavala Military Brigade, in Zone 17 of Guatemala City, where several inmates are held under military supervision. The facility also houses high-profile detainees, including former official Eduardo Masaya, who faces corruption charges.

In 2015, a ministerial agreement authorized the establishment of the Zone Seventeen Detention Center within the brigade, with a maximum capacity of 114 inmates in Area A and 21 in Area B. The agreement specified that the facility would be used exclusively for civilians or military personnel considered at risk of assassination.

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Additionally, since 2010, a prison has operated within the Matamoros Barracks in Zone 1 of Guatemala City, holding dangerous or high-profile inmates. However, media outlets have described these military detention centers as “VIP prisons,” particularly for former government officials such as ex-president Otto Pérez Molina.