Elon Musk admitted in court Monday that he wanted Tesla shareholders to trust his infamous 2018 tweet that he had “secured the funding” to take the automaker private despite his repeated attempts to say he was only believed he could be secure the money.
Why it matters: One of the questions for the jury to answer is whether the Tesla CEO’s tweets were material, meaning important information that could influence investor decisions.
Fast catch up: The Tesla CEO is being sued by investors over his phony 2018 tweet that he secured funding to take the company private.
- The trial began with two last week, with Musk beginning his testimony at the end of Friday’s proceedings after two investors and an expert took the stand.
- On Friday, he argued that “it’s hard to say the stock price is tied to a tweet” when discussing posting tweets as official company communications, adding that the stock has behaved in surprising ways at times.
What he says: “I expected that there [would] likely an increase in stock price – seems likely,” he said, according to the Financial Times.
- “If you say you’re considering delisting or acquiring a company, there’s going to be a premium.”
The big picture: Musk also testified that he posted the tweet because he feared the Financial Times would publish information about his plans and wanted all Tesla shareholders to know he was considering the transaction.
- He also said that after talking to representatives of Saudi Arabia’s sovereign wealth fund, he believed they were willing to invest as part of a takeover transaction.
Go deeper: What’s at stake for Musk in the shareholder process over 2018 Tesla tweets