Elon Says It is ‘Absurd’ to Suppose His Tweets May Influence Tesla Inventory

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Elon Musk’s tweets to his greater than 126 million followers have been credited for enhancing reputation in the whole lot from AAA video games to meme cryptocurrencies coins, however in some way, in response to the CEO, that very same Twitter bump doesn’t rely when Tesla’s involved.

Throughout his testimony Friday as a part of a Tesla shareholder lawsuit, Musk mentioned he thought it was “absurd” to counsel the content material of his tweets may impression Tesla’s inventory value. To defend his level, Musk, the debater in chief, pointed to an instance the place Tesla’s inventory value apparently rose after he wrote a tweet saying he believed the inventory was too excessive. Although regular observers might learn that as an admission his tweets can impression inventory costs, Musk mentioned that connection may solely be drawn if the inventory value went down after he claimed it was too excessive.

“Simply because I tweet one thing doesn’t imply individuals will imagine it or act accordingly,” Musk mentioned. The CEO went on to say he didn’t see any “causal hyperlink” between his tweets and Tesla’s inventory value.

The query of whether or not or not Musk’s tweets can result in actual world adjustments in conduct digs on the core of the present trial, which is centered round Musk’s fateful 2018 “funding secured” tweet the place he claimed he had efficiently lined up funding essential to take Tesla non-public at $420 per share. Tesla shareholders, who sued Musk, say these statements about taking the corporate non-public led to a quick rise in Tesla’s inventory, adopted by a precipitous crash as soon as it was clear Musk had not acquired the funding vital for the deal. Burned traders declare they wound up shedding thousands and thousands, and now Musk might need to pay out billions in damages if the jury sides in opposition to him on this trial.

Musk was pressured to revisit certainly one of his least glamorous moments on Friday. Throughout his cross examination, an lawyer representing the Tesla traders requested Musk if he agreed that his 2018 tweets a few British cave diver, whom the CEO known as a “pedo man” had an impression on Tesla inventory.

“He was not a diver,” Musk mentioned.

After asking the query as soon as extra, Musk refuted the purpose and mentioned, as soon as once more, that he disagreed his tweets impression Tesla’s inventory value. Media reports from the time, nevertheless, present Tesla inventory fell 3.5% within the rapid aftermath of his pedophile allegations.

“Tesla inventory value goes up and down on a regular basis,” Musk mentioned. “I don’t assume some tweet about somebody completely unrelated to Tesla will have an effect on the inventory value. That’s absurd.”