Science

Fraud accused Elon Musk at the helm to defend his Tesla tweets

Dark suit, white shirt, he was sworn in earlier in the day for a deposition that could continue on Monday.

The boss of Tesla — and since late October, Twitter — has slammed August 7, 2018, by saying he wants to take his car group off the stock exchange at $420 a share, then that the funding was safe.

Elon Musk [alors] Tesla CEO lied and his lies cost people millions of dollarsLaunched on Wednesday by Nicholas Porritt, a lawyer for the plaintiffs, investors gathered in collective action.

On August 10, 2018, they filed a complaint against the head of the enterprise for artificially manipulated Tesla’s share price to completely bankrupt investors who bet on the fall of the course.

“They want Tesla dead”

These top-down speculations should be illegal– said Elon Musk, answering a question from Mr. Porritt on Friday about his opinion on this type of investor.

These are bad people who steal money from small investors. They want Tesla to die and they will do anything to kill the business, this is evilhe continued to the jury.

Nicholas Porritt, an attorney for the plaintiffs, has rounded up investors for a class-action lawsuit against Elon Musk, the Tesla boss.

Photo: Reuters/PETER DASILVA

His lawyer, Alexander Spiro, assured on Wednesday that Elon Musk had every intention of taking Tesla off the stock market and had no doubts about its financial capabilities thanks to assurances from Saudi Arabia’s sovereign wealth fund.

The tweet was written hastilythe choice of words was carelessbut this is not a scamhe scored.

On Friday, a lawyer for the plaintiffs was keen to show that Elon Musk and his entourage are well aware of the consequences of his rampant Twitter chatter. He referred to one of his July 2018 tweets when discussing pedophile British caver who criticized him.

2018, tough year for Tesla

Have you taken a break from twitter?asked Mr. Porritt, referring to advice on the matter from a senior Tesla official and investor. I do not think sothe billionaire replied.

Twitter the most democratic way of communication. This gives the same access to information to all investors, large or small.he specified.

Tesla plant in California.

Tesla’s main US plant in California

Photo: Reuters/Stephen Lam

He also said that market reactions to his tweets were often unpredictable and took the opportunity to remember how difficult 2018 was for Tesla.

I slept at the factory not of my own free will, but of dutyhe insisted, before adding that listing on the stock exchange represented an additional constraint as the company was under attack from investors.

Tesla shares jumped to $386.48 immediately after the tweets. By Aug. 16, it had fallen to $335.45, according to figures provided to jurors on Tuesday by Judge Edward Chen, a far cry from the $420 per share mentioned by Musk.

Elon Musk says he did nothing wrong

The trial is expected to last three weeks. In a previous ruling in this case, the judge ruled that the infamous 2018 tweet could be considered false and misleading.

One of the applicants, Timothy Fries, said he invested in Tesla the day after the famous tweets. According to him, the message secured funding meant that Elon Musk was a dedicated partner with approved funds.

But in the days that followed, the share price fell. I lost 5000 dollars. I hope to recoup my lossesMr Fries said.

The billionaire’s proposal was incomplete, inconsistent and illusory in some respectsGuhan Subramanian, a professor at Harvard University and an expert on corporate takeovers, pointed out for his part.

The manufacturer quickly abandoned the idea of ​​leaving the rating. But the US stock market cop, the SEC, believing the boss failed to provide proof of his funding, forced him to step down as chairman of the board, pay a $20 million fine, and demand that his tweets directly related to Tesla’s activities must be pre-approved. competent lawyer.

Elon Musk sees this lawsuit as a way to revisit this SEC decision.commented Josh White, a former federal agency economist. He believes that he did nothing wrong and has the right to say whatever he wants on Twitter.

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