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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

Five laboratories investigated in Spain over possible African Swine Fever leak

Catalan authorities announced this Saturday that a total of five laboratories are under investigation over a possible leak of the African swine fever virus, which is currently affecting Spain and has put Europe’s largest pork producer on alert.

“We have commissioned an audit of all facilities, of all centers within the 20-kilometer risk zone that are working with the African swine fever virus,” said Salvador Illa, president of the Catalonia regional government, during a press conference. Catalonia is the only Spanish region affected so far. “There are only a few centers, no more than five,” Illa added, one day after the first laboratory was announced as a potential source of the outbreak.

Illa also reported that the 80,000 pigs located on the 55 farms within the risk zone are healthy and “can be made available for human consumption following the established protocols.” Therefore, he said, “they may be safely marketed on the Spanish market.”

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International

María Corina Machado says Venezuela’s political transition “must take place”

Venezuelan opposition leader María Corina Machado said this Thursday, during a virtual appearance at an event hosted by the Venezuelan-American Association of the U.S. (VAAUS) in New York, that Venezuela’s political transition “must take place” and that the opposition is now “more organized than ever.”

Machado, who is set to receive the Nobel Peace Prize on December 10 in Oslo, Norway — although it is not yet known whether she will attend — stressed that the opposition is currently focused on defining “what comes next” to ensure that the transition is “orderly and effective.”

“We have legitimate leadership and a clear mandate from the people,” she said, adding that the international community supports this position.

Her remarks come amid a hardening of U.S. policy toward the government of Nicolás Maduro, with new economic sanctions and what has been described as the “full closure” of airspace over and around Venezuela — a measure aimed at airlines, pilots, and alleged traffickers — increasing pressure on Caracas and further complicating both air mobility and international commercial operations.

During her speech, Machado highlighted the resilience of the Venezuelan people, who “have suffered, but refuse to surrender,” and said the opposition is facing repression with “dignity and moral strength,” including “exiles and political prisoners who have been separated from their families and have given everything for the democratic cause.”

She also thanked U.S. President Donald Trump for recognizing that Venezuela’s transition is “a priority” and for his role as a “key figure in international pressure against the Maduro regime.”

“Is change coming? Absolutely yes,” Machado said, before concluding that “Venezuela will be free.”

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International

Catalonia’s president calls for greater ambition in defending democracy

The President of the Generalitat of Catalonia, Salvador Illa, on Thursday called for being “more ambitious” in defending democracy, which he warned is being threatened “from within” by inequality, extremism, and hate speech driven by what he described as a “politics of intimidation,” on the final day of his visit to Mexico.

“The greatest threat to democracies is born within themselves. It is inequality and the winds of extremism. Both need each other and feed off one another,” Illa said during a speech at the National Autonomous University of Mexico (UNAM) in Mexico City.

In his address, Illa stated that in the face of extremism, society can adopt “two attitudes: hope or fear,” and warned that hate-driven rhetoric seeks to weaken citizens’ resolve. “We must be aware that hate speech, the politics of intimidation, and threats in the form of tariffs, the persecution of migrants, drones flying over Europe, or even war like the invasion of Ukraine, or walls at the border, all pursue the same goal: to make citizens give up and renounce who they want to be,” he added.

Despite these challenges, he urged people “not to lose hope,” emphasizing that there is a “better alternative,” which he summarized as “dialogue, institutional cooperation, peace, and human values.”

“I sincerely believe that we must be more ambitious in our defense of democracy, and that we must remember, demonstrate, and put into practice everything we are capable of doing. Never before has humanity accumulated so much knowledge, so much capacity, and so much power to shape the future,” Illa stressed.

For that reason, he called for a daily defense of the democratic system “at all levels and by each person according to their responsibility,” warning that democracy is currently facing an “existential threat.”

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