Elon Musk admitted in court Monday that he wanted Tesla shareholders to rely on his infamous 2018 tweet that he had “secured financing” to take the automaker private, despite his repeated attempts to say he only believed that could secure the money.
Why it matters: One of the questions the jury was tasked with deciding was whether the Tesla CEO’s tweets were material — that is, significant information that could influence investors’ decisions.
Catch up fast: Tesla’s CEO is being sued by investors over his false 2018 tweet that he had secured financing to take the company private.
- The trial began last week with two, with Musk beginning his testimony at the end of Friday’s proceedings after two investors and an expert spoke.
- On Friday, he argued that “it’s hard to say that the share price is related to a tweet” when discussing the publication of tweets as official company announcements, adding that sometimes stocks behave in surprising ways.
What is he saying: “I expected that there [would] there is likely to be some increase in the share price – it seems likely,” he said, according to the Financial Times.
- “If you say you’re looking at taking a company private or acquiring a company, … there’s going to be some kind of premium.”
The big picture: Musk also testified that he posted the tweet because he was worried the Financial Times might publish information about his plans and wanted all Tesla shareholders to know he was considering the deal.
- He also said that after his talks with representatives of Saudi Arabia’s sovereign wealth fund, he believed they had committed to invest as part of a deal to take private funds.
Go deeper: What’s at stake for Musk in shareholder trial over Tesla tweets in 2018