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- Monday's testimony of Elon Musk was part of a trial that was triggered by shareholder allegations that Tesla CEO, Tesla Motors, had committed securities fraud.
- He claimed that Saudi investors sent him "ass-covering texts" and that he intended to sell SpaceX stock in order to take Tesla private.
- Here are 11 facts we have learned about Musk, the tweet titled "funding secured", and the lawsuit's heart.
Tuesday saw Elon Musk take the stand once again to defend himself against a shareholder lawsuit alleging that Tesla CEO, Tesla Motors, committed securities fraud.
Musk is being sued by investors who claim he illegally manipulated Tesla's stock price in 2018. Musk tweeted that he had "funding secured" for the company's privatization at $420 per share.
These are 11 lessons we have learned from Musk's testimony in the San Francisco trial.
Cathie wood told Musk that Tesla investors would not support his plans
Musk said Tuesday that he has abandoned his plans to privatize Tesla at $420 per share. This was after Cathie Wood, Ark Invest CIO, and longtime Tesla bull, told him that investors would not like the move.
Musk stated that Wood's views "represent small investor" and added that he "felt it important to respond to their wishes."
Musk didn't have a number in mind to determine how much it would be to take Tesla private
Musk resisted the simple "yes" and "no" answers to Nicholas Porritt's questions about the security of funding pledges from Saudi Arabia's sovereign wealth funds. This prompted the judge to ask if a dollar amount was being discussed, instead of concepts.
Musk stated Tuesday that "Not a particular number" was Musk's intention.
Musk believed that a handshake agreement meant Saudi Arabia's sovereign fund would back Tesla private
Yasir al-Rumayyan is the governor for the $620 billion wealth trust. He is an important figure in the ongoing trial. Musk said Monday that he believed that a handshake between Al-Rumayyan and Musk meant that the Saudi fund would give him the support he needed to take Tesla private.
He said, "A signed document does not exist." "If they promise to do something, they will do it."
Musk described Al-Rumayyan's "ass-covering” in later texts, backpedaling on the move
In court filings, Musk was seen blaming Al-Rumayyan in private texts. Tesla boss described Al-Rumayyan's statement that there was no signed agreement as "assuring, for the lack of a better term"
Musk intended to sell SpaceX stock after he stated that he had "funding secured".
Tesla CEO stated that he expected to sell stock in the space tech company in order to make the carmaker private in 2018. He said that the sale could be compared to his recent offloading Tesla shares to finance his $44 billion deal for Twitter.
In cross-examination Monday, he stated that SpaceX stock alone meant "funding secured" by itself." "It's not like I want to sell SpaceX stock. But I could have. If you look at my Twitter transaction, that is exactly what I did."
Google wanted Tesla to be purchased
Google, the tech giant, had previously expressed an interest in purchasing the electric-vehicle manufacturer. This encouraged Musk to consider taking the company private using Saudi funds. Musk cited the earlier deposition that revealed the parent company Alphabet's interest in buying electric-vehicle maker Google.
Musk was determined to take Tesla private for $420 per share
Musk stated that the $420 price was not a reference to marijuana, but an 20% premium on Tesla stock at the time. He did however mention that the number is significant.
He said that there was some karma about 420. "It is not clear to me if this is good or bad Karma at the moment."
Musk sought advice from Dell's founder when he was considering selling Tesla
Musk said that Michael Dell, who in 2013 took his tech company private, was unambiguous about the idea of privatizing Tesla. He said that he had discussed the buyout with Larry Ellison, Oracle co-founder in 2017, and that he was still open to discussing it.
Musk hates short-sellers
The billionaire demanded a ban on short selling, which is when investors bet on the price of an asset falling to a lower value.
He stated that he believes short-selling should become illegal. "It's a way for Wall Street bad guys to steal money away from small investors. It is not good.
Musk does not believe Tesla shareholders want him leaving Twitter
Ron Baron, a billionaire shareholder in Tesla, stated that investors would be better off if Musk tweeted less. Musk stated that this was a reference to his controversial comments about current affairs rather than to tweets about Tesla.
Musk stated Friday that Musk was not saying "don't use Twitter" Musk said Friday that he was not saying I should not respond to criticisms in the news on Twitter.
Musk does not believe that his tweets have any effect on Tesla's share prices.Musk, one of the most active CEOs in Twitter, took Tesla private in an unscheduled takeover deal in October. Musk doesn't believe his tweets move the markets.
He said that "just because I tweet something doesn't mean people believe it or will do so," Friday.
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By: gglover@insider.com (George Glover)
Title: Elon Musk on Saudi ‘ass-covering’ and 10 other things the Tesla boss said to defend himself in the ‘funding secured’ trial
Sourced From: markets.businessinsider.com/news/stocks/elon-musk-tesla-funding-secured-saudi-ass-covering-testimony-quotes-2023-1
Published Date: Wed, 25 Jan 2023 16:53:42 +0000
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