Elon Musk testified in a San Francisco courtroom this week, defending himself against allegations that his social media posts manipulated Twitter's stock price during his $44 billion acquisition of the platform in 2022. The trial centers on claims from investors who sold their shares between May 13 and October 4, 2022, alleging Musk made false statements to drive down the company's stock.
Key Takeaways
Elon Musk testified in a San Francisco court that his social media posts were not intended to manipulate Twitter's stock price ahead of his $44 billion acquisition. Investors allege he made false statements to drive down the company's value.
- Elon Musk defended his tweets, stating they were 'extremely literal' and not meant to reduce Twitter's stock price.
- The trial focuses on claims that Musk violated securities laws by misleading investors between May 13 and October 4, 2022.
- Investors sold shares at prices below Musk's original offer of $54.20 per share due to his tweets.
- Musk acknowledged he did not consider the impact of his tweets on Twitter's stock price.
- The trial is expected to last three weeks.
Musk maintained that his posts were 'extremely literal' and not intended to reduce the purchase price. He stated, 'I was simply speaking my mind,' when asked about the impact of his tweets. The billionaire tech CEO also claimed that investors read too much into his social media activity.
The lawsuit alleges Musk violated federal securities laws by making misleading public statements about Twitter's business to delay or escape the deal. Investors claim they sold their shares at prices below Musk's original offer of $54.20 per share due to his tweets, which they believe were designed to deceive the market.
Musk acknowledged that he did not consider the potential impact of his tweets on Twitter's stock price. He compared the stock market to a 'manic depressive,' suggesting its volatility is unpredictable. The trial is expected to last three weeks, with investors seeking unspecified monetary damages from Musk.
On Thursday, Musk continued to defend his actions in court as he faces a class-action lawsuit claiming he misled investors and caused them to lose millions of dollars. Much of the testimony centered on Twitter's bot estimates, with Musk asserting that the number of fake and spam accounts was much higher than the 5% disclosed by the company.
Musk stated that saying Twitter had at least 20% bots was like 'saying the grass is green or the sky is blue.' Former Twitter CEO Ned Segal testified that the actual number of bot accounts was closer to 1%. Musk claimed that Twitter 'lied' about the number of bot accounts on its platform.
Brian Belgrave, leading a class-action lawsuit against Musk, told the court he sold 15,000 Twitter shares at $33 each after being influenced by Musk's public posts. Belgrave stated he received much less than the $54.20 price per share that Musk eventually paid.
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