On Monday, Elon Musk announced that his 2018 Tweet about taking Tesla Private was serious. And Saudi Crown Prince’s wealth fund about helping Musk to do it was no joke.
What is the Complete Story?
In 2018, Elon Musk tweeted about taking Tesla private at $420 a share, and Saudi Arabia’s sovereign wealth fund is about to help him to do it. On Monday, Musk told jurors that the tweet was not a joke and he was super serious about the plan.
But the investors in Tesla were angry and accused Musk of costing them millions of dollars with a pair of false tweets about getting the funds to take Tesla private. However, the Tesla chief answered the questions from lawyers of angry investors.
Lawyers were focussed entirely on Musk’s buying the figure of 420. It is one of the famous numbers for marijuana Musk uses. Musk was asked whether he was joking while making the tweet.
He answered it was not a joke; he chose the number because there was a 20 percent premium over the stock price. Musk added there was some karma around 420, but still, I have to question whether it is good or bad karma.
The argument was around Musk’s tweets in which he was asking for funding secured for taking Tesla private. In the second tweet, Musk announced investors had supported his decision.
As a result of his tweets, Tesla shares skyrocketed. Musk was even sued by Tesla’s shareholders; they accused him of acting recklessly and squeezing investors who went short against the company.
During the trial, Musk called short sellers evil for his companies. He said it’s impossible to appreciate short sellers attacking Tesla; they wanted the company to die.
Saudi Arabian Funds wants to Acquire a Stake in Tesla
After discovering the Financial Times story about Saudi Arabian wealth funds for acquiring a stake in Tesla, Musk decided to fire off the tweets. Musk confirmed that the Saudi Arabian investment fund is very supportive of making Tesla private without any question.
He added that the Saudi Crown Prince is also now onboard. Musk said he meant it was a done deal. However, according to him, the fund was backpedalling when confronted with Saudi funds showing they wanted to see more details before taking the deal.
Elon Musk claimed that funds would do whatever to make Tesla private. Even without Saudi Arabian funds, he has some own money to do it. He can use his shares in SpaceX. Musk also shared the complete details of making Tesla private with one of the Tesla investors, Larry Ellison.
During the testimony, Musk’s attorney said his tweets were his reckless choice of awards, but it was not a fraud. Musk also stated that it’s outrageous as he’s accused of fraud.
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