Musk Addresses Jury on Social Media Impact
Billionaire Elon Musk told a California jury on Wednesday that stock market investors tend to overinterpret his social media posts.
Musk was defending himself against claims from investors who accused him of attempting to manipulate markets through misleading messages prior to his 2022 acquisition of Twitter.
He stated that the posts he made after finalizing the deal to buy the platform were
"extremely literal"and were not intended to influence the price he would pay.
When asked if he considered the impact of his posts, including one where he declared his takeover plans were on hold, Musk said,
"I was simply speaking my mind."
He added,
"People tend to read too much into things that I do."
Background of the Lawsuit
This case is the first lawsuit related to Musk's 2022 Twitter purchase to reach trial. Musk's use of social media has previously led to legal challenges, though he has successfully defended against claims of misleading Tesla investors and defamation through his posts.
The current trial began on Monday and is expected to last three weeks.
Investors are seeking unspecified monetary damages, asserting they are owed compensation due to Musk's allegedly misleading statements.
Investor Claims and Testimonies
Brian Belgrave, representing a class of individual investors suing Musk, testified on Monday that he sold thousands of Twitter shares in July 2022 because he believed Musk would not complete the purchase.
Belgrave sold his shares at a loss compared to his purchase price months earlier and significantly below the $54.20 (£39) per share Musk ultimately paid after Twitter sued to enforce the original $44 billion takeover agreement.
Belgrave stated,
"I got screwed. I got cheated."
Post-Acquisition Changes at Twitter
Following Musk's takeover, Twitter was renamed X and underwent major changes, including significant staff reductions, the introduction of a fee for account verification, and a more relaxed approach to content moderation.
Legal Arguments and Musk's Responses
Aaron Arnzen, lead attorney for the plaintiffs, argued on Wednesday that Musk deliberately pressured Twitter into accepting his takeover bid and then demanded additional concessions to finalize the deal.
Arnzen likened Musk's strategy to a boxing tactic where one fighter tires the opponent to gain an advantage, asking Musk if he employed a
"rope-a-dope"method during negotiations.
Musk acknowledged that he
"may have"used such a tactic.
Arnzen contended this approach left individual shareholders receiving public comments from Musk that were not intended to promote transparency but rather to serve Musk's own interests.
During much of Wednesday's questioning, Musk primarily responded with
"yes," "no,"or
"I don't recall."However, as the session progressed, Musk admitted to trying to avoid simple answers, accusing Arnzen of
"trying to mislead the jury"with his questions.
Judge Charles Breyer, presiding over the trial, briefly paused the proceedings, looked directly at Musk, and then instructed that questioning continue.
Testimony of Jared Birchall
Musk's reserved responses mirrored those of Jared Birchall, one of Musk's top executives, who testified on Tuesday. Birchall manages Musk's family office, personal financial investments, and business dealings.
Birchall frequently answered
"I don't recall"when questioned by Arnzen about meetings related to Twitter, conversations with Musk about the acquisition, and emails he had sent concerning the deal.
Birchall also stated he did not recall that Jack Dorsey was Twitter's CEO prior to Musk's takeover attempt.
Dorsey and Musk are known to be friends. Dorsey had stepped down as head of Twitter a few months before Musk's bid, after leading the company for seven years.
