Elon Musk has taken to the witness box to refute allegations that Tesla shareholders were defrauded out of billions of dollars by his tweets from 2018.
The company’s chief executive wrote in 2018 that he had “secured” funding to take the electric carmaker private and later that investor backing was “confirmed”, causing shares to soar and then fall.
Investors who bought or sold stock in the days after the tweets are seeking unspecified damages, but have claimed Musk‘s tweets cost them “billions”.
The trial heard that Musk’s social media admission led to a $40m (£32m) settlement with securities regulators, as well as a class-action lawsuit alleging he misled investors, and he was forced to step down as company chairman.
The 51-year-old billionaire, who has been running Twitter since he purchased the platform for $44bn in October, attended court for around half an hour on Friday to deliver sworn testimony before a nine-person jury and a room packed with reporters and other spectators.
The trial was then adjourned for the weekend, with Musk being told to return on Monday to answer more questions.
More on Elon Musk
Related Topics:
The judge, Edward Chen, previously denied a request by Musk to have the case moved to Texas, with the billionaire expressing concern that potential jurors in California would be biased against him.
In his initial address to the courtroom, the business mogul defended his prolific tweeting as “the most democratic way” to distribute information even while acknowledging Twitter’s 240-character limit that can make it challenging to be as clear as possible.
Advertisement
Musk said: “I think you can absolutely be truthful [on Twitter].
When it emerged that the funding was not in place to take Tesla private, Musk stepped down as chairman while remaining its chief executive as part of the Securities and Exchange Commission settlement, without acknowledging any wrongdoing.
The jury focused intently on the billionaire, who was wearing a dark suit and tie, as he answered questions by Nicholas Porritt, a lawyer representing Tesla shareholders.
‘Level of pain… was excruciating’
When asked about the challenges that Tesla faced in 2018, he described spending many nights sleeping at the carmaker’s California factory as he tried to keep the company afloat.
“The sheer level of pain to make Tesla successful during that 2017, 2018 period was excruciating,” he told the court.
The trial over Musk’s Tesla tweets comes at a time when he has been focusing on Twitter while also serving as the carmaker’s CEO and also remaining deeply involved in SpaceX, the rocket ship company he founded.
His Twitter takeover has proven unpopular among Tesla’s current stockholders, who are concerned he has been paying less attention to the carmaker at a time of intensifying competition – which contributed to a 65% decline in Tesla’s stock last year that wiped out more than $700bn (£565bn) in shareholder wealth.
At least 51 people have died after heavy rain caused flash flooding, with water bursting from the banks of the Guadalupe River in Texas.
The overflowing water began sweeping into Kerr County and other areas around 4am local time on Friday, killing at least 43 people in the county.
This includes at least 15 children and 28 adults, with five children and 12 adults pending identification, Kerr County Sheriff Larry Leitha said at a news conference.
In nearby Kendall County, one person has died. At least four people were killed in Travis County, while at least two people died in Burnet County. Another person has died in the city of San Angelo in Tom Green County.
Image: People comfort each other in Kerrville, Texas. Pic: Jason Fochtman/Houston Chronicle via AP
Image: Large piles of debris in Kerrville, Texas, following the flooding. Pic: Reuters//Marco Bello
An unknown number of people remain missing, including 27 girls from Camp Mystic in Kerr County, a Christian summer camp along the Guadalupe River.
Rescuers have already saved hundreds of people and would work around the clock to find those still unaccounted for, Texas governor Greg Abbott said.
But as rescue teams are searching for the missing, Texas officials are facing scrutiny over their preparations and why residents and summer camps for children that are dotted along the river were not alerted sooner or told to evacuate.
More on Texas
Related Topics:
AccuWeather said the private forecasting company and the National Weather Service (NWS) sent warnings about potential flash flooding hours before the devastation, urging people to move to higher ground and evacuate flood-prone areas.
Image: Debris on the banks of the Guadalupe River in Hunt. Pic: AP Photo/Julio Cortez
Image: An overturned vehicle is caught in debris along the Guadalupe River. Pic: AP
The NWS later issued flash flood emergencies – a rare alert notifying of imminent danger.
“These warnings should have provided officials with ample time to evacuate camps such as Camp Mystic and get people to safety,” AccuWeather said in a statement that called Texas Hill County one of the most flash-flood-prone areas of the US because of its terrain and many water crossings.
But one NWS forecast earlier in the week had called for up to six inches of rain, said Nim Kidd, chief of the Texas Division of Emergency Management.”It did not predict the amount of rain that we saw,” he said.
Officials said they had not expected such an intense downpour of rain, equivalent to months’ worth in a few short hours, insisting that no one saw the flood potential coming.
One river near Camp Mystic rose 22ft in two hours, according to Bob Fogarty, meteorologist with the NWS’s Austin/San Antonio office. The gauge failed after recording a level of 29.5ft.
Image: A wall is missing on a building at Camp Mystic in Hunt, Texas. Pic: AP/Julio Cortez
Image: Bedding items are seen outside sleeping quarters at Camp Mystic. Pic: AP/Julio Cortez
Image: A Sheriff’s deputy pauses while searching for the missing in Hunt, Texas.Pic: AP/Julio Cortez
“People, businesses, and governments should take action based on Flash Flood Warnings that are issued, regardless of the rainfall amounts that have occurred or are forecast,” Jonathan Porter, chief meteorologist at AccuWeather, said in a statement.
“We know we get rain. We know the river rises,” said Kerr County Judge Rob Kelly, the county’s top elected official. “But nobody saw this coming.”
Judge Kelly said the county considered a flood warning system along the Guadalupe River that would have functioned like a tornado warning siren about six or seven years ago, before he was elected, but that the idea never got off the ground because “the public reeled at the cost”.
Image: A drone view of Comfort, Texas. Pic: Reuters
Image: Officials comb through the banks of the Guadalupe River in Hunt, Texas. Pic: AP/Julio Cortez
Homeland Security Secretary Kristi Noem was asked during a news conference on Saturday whether the flash flood warnings came through quickly enough: “We know that everyone wants more warning time, and that is why we are working to upgrade the technologies that have been neglected for far too long.”
Presidential cuts to climate and weather organisations have also been criticised in the wake of the floods after Donald Trump‘s administration ordered 800 job cuts at the science and climate organisation NOAA, the parent organisation of the NWS, which predicts and warns about extreme weather like the Texas floods.
A 30% cut to its budget is also in the pipeline, subject to approval by Congress.
Professor Costa Samaras, who worked on energy policy at the White House under President Joe Biden, said NOAA had been in the middle of developing new flood maps for neighbourhoods and that cuts to NOAA were “devastating”.
“Accurate weather forecasts matter. FEMA and NOAA matter. Because little girls’ lives matter,” said Frank Figliuzzi, a national security and intelligence analyst at Sky’s US partner organisation NBC News.
Musk had previously said we would form and fund a new political party to unseat lawmakers who supported the bill.
From bromance to bust-up
The Tesla boss backed Trump’s election campaign with more than a quarter of a billion dollars, later rewarded with a high profile role running the newly created department of government efficiency (DOGE).
Image: Donald Trump gave Musk a warm send-off in the Oval Office in May. Pic: Reuters
In May Musk left the role, still on good terms with Trump but criticising key parts of his legislative agenda.
After that, the attacks ramped up, with Musk slamming the sweeping tax and spending bill as a “disgusting abomination” and Trump hitting back in a barbed tit-for-tat.
Trump earlier this week threatened to cut off the billion-dollar federal subsidies that flow to Musk’s companies, and said he would even consider deporting him.
Donald Trump’s ‘big, beautiful bill’ has passed and he’s due to sign it into law on Independence Day. Mark Stone and David Blevins discuss how the bill will supercharge his presidency, despite its critics.
They also chat Gaza and Ukraine, as Donald Trump meets with freed Israeli-American hostage Edan Alexander and talks to Vladimir Putin.
If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.