SAN FRANCISO — A high-profile trial centered on a 2018 tweet concerning the financing for a Tesla buyout that by no means occurred drew a shock spectator Friday — Elon Musk, the billionaire accused of deceptive traders together with his utilization of the Twitter service he now owns.
Musk, the CEO of each Tesla and Twitter, strode into the San Francisco federal courtroom moments earlier than closing arguments from the opposing legal professional within the case had been scheduled to start and took a seat alongside his authorized crew. Like everybody else within the courtroom, he was carrying a masks, as required by U.S. District Choose Edward Chen, however briefly dropped it as he chuckled and whispered one thing to certainly one of his legal professionals.
Though an August 7, 2018, tweet disclosing he had “funding secured ” is the on the heart of the trial, Musk wasn’t required to point out up for Friday’s proceedings. His presence in court docket whereas he’s making an attempt to reverse big losses at Twitter and overseeing Tesla amid stiffening competitors underscores the significance of the trial’s consequence to him.
If the nine-person jury decides to carry him accountable for deceptive Tesla shareholders throughout a 10-day interval in August 2018 for the funding secured tweet and a follow-up tweet indicating a deal was imminent, Musk and Tesla could possibly be on the hook for billions in damages.
These 2018 tweets have already got price Musk and Tesla $40 million to settle Securities and Trade Fee allegations of misconduct. Chen had determined final yr that Musk’s 2018 tweets had been false and has instructed the jury to view them that approach.
Throughout roughly eight hours on the stand, Musk insisted he believed he had lined up the funds from Saudi Arabia’s Public Funding Fund to take Tesla personal after eight years as a publicly held firm. He defended his preliminary August 2018 tweet as a well-intentioned communication to make sure all Tesla traders knew the automaker may be on its option to ending its then-eight-year run as a publicly held firm.
“I had no in poor health motive,” Musk testified. “My intent was to do the suitable factor for all shareholders.”
The jury is anticipated to start its deliberations within the afternoon after the closing arguments are completed.
