Tesla directors to testify in 'funding secured' trial

• Published date: 02 February 2023
• Publication title: Malay Mail Online

Tesla Inc board members are expected to take the stand today to defend against claims that Elon Musk misled investors when he tweeted in 2018 he had 'funding secured' to take the company private.

The trial in San Francisco federal court is testing whether the world's second-richest person can be held liable for his sometimes impulsive use of Twitter.

The defendants, which include Musk, Tesla, and current and former directors, are expected to begin calling witnesses today.

Current Tesla directors Kimbal Musk, and James Murdoch and Ira Ehrenpreis may testify about their communications with Musk about his proposed buyout, according to court documents.

Tesla's stock surged after Musk's 2018 tweet that he had 'funding secured' to take the carmaker private at a US$420 (RM1,366) per share price, a premium of about 23 per cent to the prior day's close. The stock fell as it became clear the buyout would not happen and investors say they lost billions of dollars on their...