Elon Musk, CEO of Tesla Inc (TSLA.O), is expected to testify in a jury trial on Friday about his 2018 tweet that he had “funding secured” to take the electric automaker private, which shareholders claim caused them millions in trading losses.
The billionaire entrepreneur was named as the third possible witness in the class action trial in San Francisco federal court on Friday, following a securities expert and a Tesla investor.
Musk, known for his aggressive testimony, is expected to explain why he pressed on Saudi investor support for the purchase, which never materialized, and whether he willfully made a materially deceptive statement with his tweet.
The case is an unusual securities class action trial, and the plaintiffs have already overcome significant legal obstacles, with U.S. Judge Edward Chen declaring last year that Musk’s tweet was deceptive and reckless.
In his opening arguments on Wednesday, shareholder attorney Nicholas Porritt told the jury that Musk lied when he wrote the tweet, costing investors like Glen Littleton, the lead plaintiff, money.
Musk’s attorney, Alex Spiro, countered in his opening statement that Musk believed he had financing from Saudi backers and was taking steps to make the deal happen. Fearing leaks to the media, Musk tried to protect the “everyday shareholder” by sending the tweet, which contained “technical inaccuracies,” Spiro said.
A jury of nine will decide whether the tweet artificially inflated Tesla’s share price by playing up the status of funding for the deal, and if so, by how much.
The defendants include current and former Tesla directors, whom Spiro said had “pure” motives in their response to Musk’s plan.
The trial resumes after a day off on Thursday.
reuters