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
Winter storm disrupts holiday travel, forcing 1,500 flight cancellations in the U.S.
Airlines canceled around 1,500 flights across the United States during the peak Christmas travel season after warnings of a severe winter storm and forecasts of heavy snowfall in the Midwest and Northeast. An additional 5,900 flights were delayed due to adverse weather conditions.
More than 40 million Americans were under snowstorm warnings or weather advisories one day after Christmas. Meanwhile, another 30 million people faced flood or storm alerts in California, where an atmospheric river triggered intense rainfall.
New York City was bracing for up to 25 centimeters (10 inches) of snow overnight, which would mark its heaviest snowfall in four years. Cold weather was expected to persist through the weekend in the nation’s largest city. According to flight-tracking website FlightAware, airports in the New York area recorded about 850 flight cancellations.
International
At Least Eight Dead and 19 Injured in Deadly Bus Crash in Veracruz, Mexico
A tragic bus accident in the eastern state of Veracruz left at least eight people dead and 19 others injured on Wednesday afternoon, according to local authorities.
The vehicle was traveling through the town of Zontecomatlán when it crashed near a ravine, state Civil Protection officials reported late Wednesday night. “Regrettably, the prosecutor’s office has confirmed eight fatalities,” the agency stated in an official release.
Emergency Response and Medical Care Rescue teams worked into the night to assist the survivors. The 19 injured passengers were stabilized at the scene before being transported to hospitals in the nearby municipalities of Chicontepec and Huayacocotla. While the identities of the victims have not yet been released, Mexican press reports indicate the bus was en route from Mexico City to Chicontepec.
A Recurring Issue on Mexican Highways Road accidents involving long-haul passenger buses and freight transport are a frequent occurrence in Mexico. Experts often cite excessive speed, mechanical failure, or driver fatigue as the primary catalysts for these tragedies.
This latest incident follows another major disaster in late November, where 10 people were killed and 20 injured in a similar bus crash in the western state of Michoacán. The recurring nature of these accidents continues to spark national debate regarding the enforcement of stricter safety regulations for commercial transport units.
International
Jair Bolsonaro Hospitalized for Inguinal Hernia Surgery While Serving Sentence for Attempted Coup
Former Brazilian President Jair Bolsonaro, currently serving a 27-year prison sentence for an attempted coup, underwent surgery this Thursday for an inguinal hernia. The procedure took place at the DF Star Hospital in Brasilia, according to his wife, Michelle Bolsonaro.
The 70-year-old former leader left prison on Wednesday for the first time since his incarceration in late November to prepare for the operation. “My love has just gone to the surgical center,” Michelle Bolsonaro posted on Instagram, where she has been documenting her accompaniment during his hospitalization.
Surgical Expectations and Health History Medical professionals treating the far-right ex-president (2019-2022) anticipate the operation will last approximately four hours. His recovery period in the hospital is expected to extend between five and seven days.
Dr. Claudio Birolini explained on Wednesday that while the surgery is standardized, it remains complex due to the patient’s history. Bolsonaro continues to suffer from the long-term effects of a 2018 campaign rally stabbing, an injury that required several major abdominal surgeries in the years following the attack.
“There is no such thing as a simple surgery. However, this is a scheduled and standardized procedure, so we expect it to be carried out without major complications,” Dr. Birolini stated.
Potential Additional Procedures Following the hernia repair, the medical team will evaluate whether Bolsonaro can undergo a second procedure: an anesthetic block of the phrenic nerve. This nerve controls the diaphragm, and the intervention would aim to resolve a chronic case of recurrent hiccups that has plagued the former president for years.
Bolsonaro remains under heavy security at the medical facility as he serves his lengthy sentence related to the events surrounding the January 2023 institutional crisis in Brazil.
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