Elon Musk told a jury in California that investors place excessive weight on his social media posts while he defended himself against accusations that he manipulated the market during the lead-up to his 2022 purchase of Twitter. Musk appeared in court as part of a lawsuit brought by investors who claim they suffered financial losses after relying on statements he made publicly about the takeover.
The testimony took place during a trial in San Francisco that began Monday and is expected to last three weeks. The lawsuit marks the first case related to Musk’s 2022 Twitter acquisition to reach trial.
Musk Defends His Social Media Statements
During questioning on Wednesday, Musk said that posts he made on social media after reaching an agreement to acquire Twitter were “extremely literal” and were not intended to influence the price he would ultimately pay for the company.
“I was simply speaking my mind,” Musk said when asked whether he considered the possible impact of his messages, including a post in which he said the takeover was on hold.
“People tend to read too much into things that I do,” he added.
Musk also told the jury that his public posts reflect his personal thoughts at the time they are written.
“What I think privately is what I say publicly, there’s no difference,” he said.
Investors Claim Posts Influenced Their Decisions
The lawsuit was brought by a group of investors who argue that Musk made misleading statements during the takeover process. They claim those statements affected the market and caused financial losses when they acted on the information.
Investors are seeking unspecified monetary damages.
Brian Belgrave, who leads the group of individual investors bringing the case, testified that he sold thousands of Twitter shares in July 2022 after interpreting Musk’s public comments as a signal that the acquisition would not proceed.
Belgrave said he sold the shares for less than what he had paid earlier and far below the $54.20 per share Musk ultimately paid when he completed the $44 billion takeover after Twitter sued to enforce the agreement.
“I got screwed,” Belgrave said in court. “I got cheated.”
Court Examines Musk’s Conduct During Takeover Talks
During questioning by plaintiffs’ attorney Aaron Arnzen, Musk was asked about his negotiation tactics during the takeover process.
Arnzen argued that Musk pushed Twitter into quickly accepting his bid and then demanded additional concessions during negotiations. He compared the approach to a boxing tactic known as a “rope-a-dope,” in which one fighter attempts to tire out the other before striking.
When asked whether he had used such an approach during the negotiations, Musk said he “may have.”
Arnzen also alleged that Musk’s public comments during the takeover process provided information that shareholders interpreted as transparency but that instead served Musk’s own negotiating interests.
Judge Pauses Proceedings During Testimony
Throughout much of Wednesday’s testimony, Musk answered many questions with short responses such as “yes,” “no,” or “I don’t recall.”
As questioning continued, Musk acknowledged he was trying to avoid direct answers to some questions. He accused Arnzen of attempting to mislead the jury through the phrasing of his questions.
Judge Charles Breyer, who is overseeing the trial, briefly paused the proceedings during the exchange before allowing questioning to continue.
Earlier Testimony From Musk Associate
Jared Birchall, who manages Musk’s family office and oversees many of his financial dealings, also testified earlier in the week. Birchall appeared before the jury on Tuesday.
During questioning, Birchall responded “I don’t recall” numerous times when asked about meetings, conversations with Musk, and emails related to the Twitter acquisition.
Birchall also said he did not recall that Jack Dorsey had been the chief executive of Twitter before Musk began pursuing the takeover.
Dorsey and Musk are known to be friends. Dorsey had stepped down as head of Twitter only months before Musk made his bid for the company after serving as chief executive for seven years.
Background Of Musk’s Twitter Acquisition
Musk ultimately completed the purchase of Twitter for $44 billion. After taking control of the company, he renamed the platform X.
Following the acquisition, Musk introduced several changes to the service. The company reduced its workforce, launched a paid verification system for accounts, and altered its approach to moderating user content.
The trial now underway is the first lawsuit related to the Twitter acquisition to reach court.
Featured image credits: Wikipedia
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