Shulou(Shulou.com)11/24 Report--

January 21 news, local time on Friday, Tesla CEO Elon Musk (Elon Musk) on the "privatization of Tesla" tweets suspected of fraud to testify. Musk argues that just because he tweets doesn't mean people will believe it, and investors don't always react to his tweets as expected.

Mr Musk testified for less than 30 minutes before the court adjourned until Monday and no one asked him about his 2018 tweets when he was considering privatising Tesla and said he had received funds.

Musk's testimony began with questioning his use of Twitter, which he argued was the most democratic form of communication. But he retorted that his tweets did not always affect Tesla shares in the way he expected. Musk told the jury in federal court in San Francisco: "my tweeting does not mean that people will believe and will not necessarily act accordingly."

In the lawsuit, Mr Musk is expected to talk about why he insisted that Saudi investors support his privatisation of Tesla and whether he deliberately made a materially misleading statement in his tweet.

The case is a securities class action, and the plaintiffs have cleared many legal hurdles, and US judge Edward Chen ruled last year that Musk's financing tweets were untrue and reckless. Shareholders accused Musk of lying in his tweets, causing millions of dollars in losses to investors.

Investors argued that the tweets amounted to lies and that they suffered huge losses from wild swings in share prices in the 10 days before the plan was abandoned. The trial asked jurors to investigate Musk's state of mind when he posted the messages and to determine whether his tweets on social media really affected investors' trading.

When the investor's lawyer asked Musk if he needed to handle his tweets accurately, Musk replied that he was providing "information that the public should hear," but the tweets could only convey a maximum of 240 characters.

Mr Musk described the difficulties Tesla experienced when tweeting, including short sellers betting that the company's share price would fall. "A group of sharks on Wall Street very much want Tesla to decline," he said. " The "shark" he refers to refers to short sellers, who usually make a profit when share prices fall. Musk said short sellers made up false stories and said the practice should be made illegal.

Earlier on Friday, Tesla investor Timothy Frith (Timothy Fries) told the jury that Tesla's shares fluctuated after Musk tweeted, causing him to lose $5000. Mr. Frith said Mr. Musk's claim that "funding is guaranteed" means that "these sources of funding have been reviewed by the relevant agencies."

The day after Musk tweeted, he bought 50 shares of Tesla for $18000. "Musk told the world that he planned to privatize Tesla and got the money," he recalls. Considering the share price at the time, I thought it was a good place to buy. "

When Tesla's share price fell, Frith lost $5000. "I am involved in this lawsuit because I feel aggrieved and I feel that I have suffered a loss because of Musk's misrepresentation," he said. "

Mr Musk's personal lawyer, Alex Spiro, told the jury in his opening statement on Wednesday that Mr Musk believed he had received money from Saudi supporters and was taking steps to close the deal. Spiro said Musk tried to protect "shareholders" by sending the tweet for fear that confidential information would be leaked to the media.

Spiro admitted that although Musk's tweets were too hasty and contained technical errors, they accurately conveyed his sincerity in privatizing Tesla.

Guhan Subramanian, a professor at Harvard Law School, told the jury that Mr Musk's actions in 2018 were "unprecedented" and "incoherent" in building corporate deals because he disclosed his intentions without proper financial or legal analysis.

A jury of six men and three women will decide whether the tweet artificially pushed up Tesla's share price. If so, how much has Tesla's share price been raised? The defendants in the case included Tesla's outgoing and serving directors, who had their own motives in responding to Mr Musk's plan, Mr Spiro said.

Tesla's shares closed up about 5% at $133.42 on Friday local time. Tesla's share price has plummeted 33% since December 1, as the electric carmaker faces increasing competition and a looming recession.

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