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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

ICE agent arrested in Texas over shooting of Venezuelan migrant in Minnesota

U.S. authorities arrested an Immigration and Customs Enforcement (ICE) agent on Friday in Texas after he was accused of shooting a Venezuelan migrant in Minnesota earlier this year and later providing false information about the incident.

The suspect, identified as Christian Castro, faces four counts of second-degree assault, along with an additional charge related to filing a false official report. He was taken into custody after investigators from the Minnesota Bureau of Criminal Apprehension located him, according to a statement from the Hennepin County Attorney’s Office.

The case stems from a January operation carried out by ICE during which Castro shot Julio César Sosa, a Venezuelan migrant, in the leg. Prosecutors allege that the agent later submitted a misleading account of the incident, claiming that Sosa and another migrant had attacked officers with a shovel and a broomstick.

However, investigators say that video evidence and further findings contradicted that version of events, leading to the dismissal of charges initially brought against the migrants by federal prosecutors.

ICE’s acting director, Todd Lyons, acknowledged in February that agents involved in the incident had given “false sworn testimony” about what occurred.

Hennepin County Attorney Mary Moriarty described Friday’s arrest as a “critical step forward” in the judicial process and reaffirmed that the investigation remains ongoing.

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Internacionales

Rubén Gallego says U.S. policy may push for Cuba regime change under Trump administration

Democratic Senator Rubén Gallego said on Friday in Madrid that U.S. Secretary of State Marco Rubio has an “obsession” with Cuba and suggested that the administration of President Donald Trump is determined to change the Cuban government by any means necessary.

Speaking in Spanish during a meeting with journalists at the Elcano Royal Institute for International and Strategic Studies, Gallego said he believes there could be an attempt to alter the Cuban government, potentially through military or other non-democratic means.

“I think there will be an attempt to change the government of Cuba, it could be through the military or in another way,” said Gallego, who is of Mexican-Colombian origin.

The Arizona senator argued that Cuba does not represent a threat to the United States, describing it as “a very poor island of nine million people.” However, he acknowledged the significant political influence of Cuban-Americans and of Secretary of State Marco Rubio within the current Trump administration.

Gallego also expressed opposition to U.S. military interventions aimed at overthrowing foreign governments, stating that such actions are unacceptable, particularly when their objective is regime change.

He noted that “almost 99% of Democrats” oppose any military intervention in Cuba.

The senator also referred to the U.S. operation to capture Venezuelan President Nicolás Maduro on January 3, stating that although Maduro is “a horrible and very corrupt man,” this does not justify overthrowing governments through force.

“If we start arguing that a president is a criminal, what prevents China from saying the same about Taiwan or other nations?” he warned.

Gallego further described the political transition process in Venezuela as a “failure,” arguing that little has changed in terms of governance outcomes.

“We went from one dictator to another, so from a geopolitical and strategic point of view it has been a failure, until we see whether Venezuela achieves a real democratic transition,” he said, referring to Maduro’s replacement by Delcy Rodríguez.

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International

U.S. classifies CV and PCC as terrorist groups in major policy shift

The United States government announced on Thursday that it will add the Brazilian criminal organizations Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) to its list of Foreign Terrorist Organizations (FTO), a designation set to take effect on June 5, 2026.

The State Department justified the decision by stating that both groups are among the most powerful criminal organizations in Brazil and accused them of coordinating violent attacks against police officers, public officials, and civilians.

The designation comes just days after Brazilian senator and presidential hopeful Flávio Bolsonaro directly asked U.S. President Donald Trump to classify these groups as “narco-terrorist” organizations during a visit to the White House.

Bolsonaro, who is running in Brazil’s upcoming presidential election in October, has made tougher action against organized crime and prison-based gangs a central part of his campaign platform.

He is part of a political dispute with current Brazilian President Luiz Inácio Lula da Silva, who has opposed the U.S. classification, warning it could open the door to potential foreign military intervention in Brazilian territory.

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The Comando Vermelho and Primeiro Comando da Capital emerged in Brazilian prisons during the 1970s and have since expanded their influence, now controlling extensive criminal activities including drug trafficking, extortion, smuggling, and other illicit operations.

According to security experts and Brazilian authorities, both organizations have tens of thousands of members and support networks spread across multiple states in the country.

The U.S. measure aims to increase financial and operational pressure on these groups by restricting funding sources, limiting international mobility, and expanding cooperation in security enforcement efforts.

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