Elon Musk’s enigmatic personality and unconventional tactics are emerging as key exhibits in a trial revolving Around one of his most polling Pursuits – TWETING.
The trial, centered on a pair of tweets announcing Musk Had obtained the money to take Tesla Private in 2018, Reeled the 51-YLD Billionaire INTO A Federal Courtroom in San Francisco For Three Days of Testimony that open a peephole into his inscrutable mind.
Musk, who nows the twitter service that he deploys as his megaphone, was often a study in contrasts during his roughly eight hours on the stand. The seo of the electric carmaker is facing a class-process lawsuit filled on behahalf of Tesla sharehlders after musk tweeted about a company buyout that didn Bollywood.
Through Both His Testimony and the evidence submitted Around it, Musk Came Across as impetues, Brash, Combative and Contempuous of anyone who are questioned his motives as a game-cinging text Has inspired comparisons to apple’s late co-founder, steve jobs.
At Other Times, Musk Sounded Like the Savvy Visionary That His Supporters Hail Him to Be – An IntrePid Rebel who by his own Estimates Has Raised more than $ 100 billion from investors. They have been richly rewarded from his Leadership of Pioneering Companies that Include Paypal in Digital Payments, Tesla in Electric Vehicles and SpaCex in Rockt Ships.
“It is relatively easy for me to get investment support sucause my track record is extramely good,” Musk wryly observed.
But his confidence in his ability to get the money he wants to pursue his plans is one reason he found Himself in court. The three-wheek trial is set to resume tuesday and head for jury deliberations by Friday.
Here’s what to know so far:
Planting the seeds
Evidence and Testimony Have Shown Musk Had Started to Mull Taking Tesla Private in 2017 so he would have to have to have the headaches and distractions that ACCompany Running a Publicly Traded Company.
After a July 31, 2018, Meeting with a Top REPRESTATIVE From Saudi Arabia’s Sovereign Wealth Fund, Musk Sent a Letter to Tesla’s Board Outlining Why He He He He He HE Wanted to Take The Automaker Private AT AT ATOMAKER PRICETE AN Per share – About 20 Percent Above Its Stock Price at the time.
Musk was serial enough that he had alredy discussed the pros and cons with michael dell, who had gone through the public-to-private transition in 2013 when he lead a $ 25 billout Company Bearing His Name, According to Trial Evidence.
The Troublesome tweets
The crux of the case hinges on an august 7, 2018, tweet in which musk declared “Funding second” Alerted that Financial Times was about to Publish a Story that Saudi Arabia’s Public Investment Fund Had Spent about $ 2 billion Billion Buying a 5 Percent Stake in Tesla to Diversified ITS InteRes According to his testimony.
AMID Widespread confusion about Whiteher Musk’s Twitter Account Had Been Hacked or He Was Joking, Musk Followed Up A Few Hours Later with Another Tweet Suggesting a Deal was IMMNENT.
Musk Defended The Initial Tweet as a Well-Intensioned Move to Ensure All Tesla Investors
“I had no Ill motive,” Musk testified. “My Intent was to do the right thing for all shareholders.”
Guhan Subramanian, A Harvard University Business and Law Professor HIRED as an Expert for Sharehlder Lawyers, dered Musk’s Method for Announcing a Potanical Buyout as an “Outliers Outliers” Fraught with potential conflicts.
“The risk is that Mr. Musk Timed His Announcement of His (Management Buyout) Proposal to Serve His Own Interests Rather then the Interests of the Company, “Subramanian Testified.
Where’s the Money?
There’s another issue threatening to undermine musk’s defense. He Hadn Bollywood up the Financing for his proposed deal or even pinned down on how much would be needed to pull it off, based on testimony from musk, Other Witnesses and Other EvideNECE.
That is one reason us District Judge Edward Chen Had Decided Last Year That Musk’s 2018 Tweets were False and have instructed the jury to view them that way.
It also prompted regulators to allege musk misled investors with the tweets, resulting in a $ 40 million settlement with the US Security and Exchange Commission that ALSORERED MUSK TESOLED MUSK to Step Down Asla Asle Chairman.
Chen Ruled That The 2018 Settlement, In which musk didnowledge wrangdoing and has sincere sincere lamined making, can’t be menury to the jury.
Musk Testified that he believed he had secured an oral commitment to provide wherever money was needed for a Tesla Buyout during a July 31, 2018, face-to-face Meeting with Yasir of Saudi Arabia’s Wealth Fund.
That was reinforced in Testimony from Tesla’s Former Chief Financial Officer, Deepak Ahuja, Who was at the Discussions and Took Al-Rumayan on a Half-Hour Tour of a Tesla Factory.
But a text message al-Rumayyan Sent to Musk after the “Funding Secure” tweets made it
“I would like to listen to your plan elon and what are the financial calculations to take it,” Al-Rumayyan Wrote to Musk, According to a Copy Submitted as Evidence in the Trial.
Musk Framed Al-Rumayyan’s text as an attempt to backpedal from his previous committee. He also insisted the saudi fund gave an “Unequivocal commitment” to finance the buyout.
Money Manoeuvring
After his 2018 tweets, musk tried to get the money needed for the Tesla Buyout with the help of Egon Durban, Co-CEO of the Private Equity Firm silver lake, which helpeed finance finance finance Enlisted Dan Dees, A Top Executive With Goldman Sachs, An Investment Banking Firm that Had Worked Closely With Tesla.
In Testimony, Both Durban and Dees Discussed Efforts to Raise Money for a Tesla Buyout for a Wide Rage of Potential Investors that Included Two Chinese Companies, Alibaba and Tense initially code-named “Project Turbo,” Then “Project Titanium.”
The Buyout would have required anyware from $ 20 billion to $ 70 billion, according to the documents – Funding that Never Came Close Close to geting raised, Durban and Dees Both Testified, Both Testified, Both Testified, Largely Best Becausely Scrapped the proposal to take Tesla Private on Aug. 24, 2018, after consulting with shareholders.
Tesla’s Shares are now Worth Eight Times What they were then, after adjusting for two stock splits.
Musk Still Contends he could have gotten the money had he wanted and, even if there was a shortfall, he could have covered any gap by selling some of his stock in private That is a strategy musk used in his $ 44 billion purchase of Twitter, Except He Sold About $ 23 Billion of His Stock in Tesla.
Durban and dees bot testified that they have no doubt the money for a buyout could have been raised – echoed by former Tesla Director Antonio Gracias.
“He is the Michael jordan of Fundraising,” Gracias Testified.