Elon Musk “lied” when he claimed he had “secured” funding to take Tesla private, an investor lawyer told a court.
Chief executive of the company Written in 2018 that it had “secured” funding to take the electric car maker private and later “confirmed” the investor’s backing, Due to which the shares fell and then rose..
Less than three weeks later, Musk backed out of the plans..
However, Musk’s lawyer argued in court that the billionaire simply used the “wrong words” when tweeting about his plans.
During opening statements, the investors’ lead attorney, Nicholas Port, told a jury in San Francisco that “millions of dollars were lost when [Musk’s] Lies Exposed”
But Alex Spiro, who represents Musk, said the billionaire was “serious” about taking the company private in 2018, but ultimately faced shareholder opposition.
“You will find out very quickly that this was not fraud, not even close,” he told jurors.
However, the lawyer told the jury that there were some “technical errors” in Musk’s Twitter post.
“In haste, he used the wrong words,” he told the court.
In his testimony in court, Littleton said he invested in Tesla in 2015.
He said he had scrambled to liquidate his Tesla options positions after seeing Musk’s “safe from funding” post, which the tweet made unprofitable.
A nine-person jury will decide whether Musk’s tweets artificially inflated Tesla’s share price to fund the deal, and if so, by how much.
The trial resumes Friday with an expert witness and could include Musk.
Judge Edward Chen denied Musk’s request to move the case to Texas last week, with the billionaire expressing concern that potential judges in California would be biased against him.
He cited negative media coverage. It has cut thousands of jobs at Twitter.who resides in San Francisco, After the takeover of the social media platform last October.
A jury will be tasked with deciding whether Musk’s tweets influenced investors, whether he acted intentionally, and whether damages should be awarded.
Judge Chen has already ruled that the statements SpaceX Malick was wrong, but the defendants will argue that he had good reason to believe that the funding to take Tesla private was secure.
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