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
Argentina detects first local cases of Influenza A (H3N2) Subclade K
Argentina’s National Administration of Laboratories and Health Institutes (ANLIS) “Dr. Carlos G. Malbrán” has confirmed the detection of three cases of influenza A (H3N2) corresponding to subclade K in the country. These are the first locally recorded cases of this variant, which has become predominant in several countries in the Northern Hemisphere in recent months and is associated with higher transmissibility.
The cases were identified through the National Network of Laboratories and Sentinel Units and confirmed by the National Reference Laboratory of INEI-ANLIS using genomic sequencing techniques. According to health authorities, the cases involve two adolescents from the province of Santa Cruz, detected as part of the Ambulatory Monitoring Strategy for Acute Respiratory Infections, and a child who had been hospitalized in the Autonomous City of Buenos Aires.
In all three cases, patients experienced mild illness and recovered without complications. Officials did not specify whether any of the affected individuals had a recent travel history.
The jurisdictions involved have already launched the corresponding epidemiological investigations and are responsible for ensuring timely medical care for the detected cases. According to the latest integrated surveillance report, the circulation of influenza and other respiratory viruses in Argentina remains within expected levels for this time of year.
International
Pentagon confirms Trump pick for SouthCom as U.S. military pressure grows
Former U.S. President Donald Trump has nominated a Marine Corps lieutenant general to lead U.S. Southern Command (SouthCom), the Pentagon announced on Friday, as Trump said he does not rule out the possibility of a war with Venezuela.
If confirmed by the U.S. Senate, Marine Corps Lieutenant General Francis L. Donovan would replace an admiral who, according to media reports, criticized recent attacks on vessels allegedly linked to drug trafficking off the Venezuelan coast.
Washington has deployed a significant military presence in both the Caribbean and the Pacific, where it has carried out airstrikes against boats it claims were used by suspected drug traffickers. According to an AFP tally based on official information, the attacks have left more than 100 people dead.
The Venezuelan government has denounced what it describes as a plot to overthrow President Nicolás Maduro and seize the country’s oil resources.
In a statement published Friday on the Pentagon’s website, U.S. Secretary of Defense Pete Hegseth announced that Trump had nominated Lieutenant General Donovan to serve as commander of U.S. Southern Command.
SouthCom is responsible for U.S. military operations in Central and South America, as well as parts of the Caribbean.
According to the Department of Defense, Donovan currently serves as deputy commander of U.S. Special Operations Command. His appointment is subject to Senate confirmation.
International
Trump moves to reclassify marijuana as less dangerous substance
Former U.S. President Donald Trump signed an executive order on Thursday to reclassify marijuana as a less dangerous addictive substance, a move aimed at encouraging medical research without immediately opening the door to federal-level decriminalization.
Trump said that “people were begging” him to make the decision, particularly individuals suffering from chronic pain. He stressed, however, that the measure “is not at all a decriminalization” of marijuana for non-medical use.
“I’ve always told my children: don’t use drugs, don’t drink, don’t smoke,” Trump added. He is a well-known teetotaler.
A senior government official described the decision as “common sense” during a briefing with reporters, noting that marijuana and CBD-based products — a compound derived from cannabis known for its relaxing properties — are already widely used in the United States by patients dealing with chronic pain.
Most U.S. states currently allow the use of cannabis for medical purposes, and more than 20 states, along with the nation’s capital, Washington, D.C., have also legalized recreational use.
Argentina detects first local cases of Influenza A (H3N2) Subclade K
Pentagon confirms Trump pick for SouthCom as U.S. military pressure grows
Trump moves to reclassify marijuana as less dangerous substance
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