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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

Climate-driven rains trigger one of Indonesia’s deadliest flood emergencies in years

A torrential monsoon season, compounded by two unusual tropical cyclones, has triggered intense rainfall in several regions since last week, including southern Thailand, northern Malaysia, and large parts of Indonesia.

Climate change has recently intensified rainfall patterns, as a warmer atmosphere is able to hold more moisture. In Indonesia, desperation is growing among those affected by the disaster due to the slow pace of rescue operations and the distribution of humanitarian aid.

Relief agencies warned that the scale of the emergency is nearly unprecedented, even for a country accustomed to frequent natural disasters.

Across the island of Sumatra, the death toll was revised downward to 770 fatalities and at least 463 people still missing as of Wednesday night. Earlier, the national disaster management agency had reported 804 deaths.

Gathering accurate information on the ground remains difficult, as many regions are still cut off due to flood damage, widespread power outages, communication failures, or a combination of all three.

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International

Russian authorities ban Roblox citing child safety and moral concerns

Russia has blocked access to the U.S.-owned game creation platform Roblox, accusing it of distributing extremist materials and what authorities described as “LGBT propaganda,” state media reported on Wednesday.

The country has repeatedly threatened to ban certain foreign digital platforms, a move that human rights organizations view as part of broader efforts by authorities to tighten control over internet use.

In a statement released through Russian news agencies, the federal communications watchdog Roskomnadzor accused Roblox of hosting “inappropriate content that can negatively affect the spiritual and moral development of children.”

“The game exposes minors to sexual harassment, tricks them into sharing intimate photos, and encourages them to commit acts of depravity and violence,” the regulator claimed.

Last week, the same agency also threatened to ban WhatsApp, the country’s second most widely used messaging app, accusing it of failing to prevent criminal activity.

Roblox, which is owned by the U.S.-based Roblox Corporation, did not immediately respond to a request for comment.

According to company data for 2024, the platform has around 100 million daily users worldwide, nearly 40% of whom are under the age of 13.

Other countries, including Qatar, Iraq and Turkey, have also restricted or banned Roblox, mainly over concerns about the safety of underage users. In the United States, the states of Texas and Louisiana have filed lawsuits against the platform on similar grounds.

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El Chapo’s son Joaquín Guzmán López pleads guilty to U.S. drug trafficking charges

Joaquín Guzmán López, one of the sons of notorious Mexican drug lord Joaquín “El Chapo” Guzmán, pleaded guilty on Monday to drug trafficking charges in a U.S. court, months after his brother Ovidio reached a similar plea agreement, according to local media reports.

The defendant appeared before a federal court in Chicago early Monday afternoon and changed his previous plea in the case, the Chicago Tribune reported. U.S. authorities accuse him of forming, together with his three brothers, the cartel faction known as “Los Chapitos.”

The group is believed to have continued the operations of El Chapo, who has been serving a life sentence in the United States since 2019.

Guzmán López, 39, was arrested after landing in Texas in a small aircraft alongside cartel co-founder Ismael “El Mayo” Zambada.

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