International
Elon Musk takes stand in Tesla tweet fraud trial
January 23 | By AFP | Glenn Chapman |
Tesla CEO Elon Musk took the stand in a California fraud trial on Friday, accused of lying in tweets about taking the auto company private, punishing investors.
Musk was called to testify by lawyers for angry investors who accuse him of costing them millions of dollars in 2018 with untrue tweets about having funding secured to buy out shareholders at $420 a share.
The multi-billionaire’s tweets sent the Tesla share price on a rollercoaster ride and Musk was sued by shareholders who say the tycoon acted recklessly in an effort to squeeze investors who had bet against the company.
Musk, who bought Twitter itself in October, downplayed the power of his tweets noting under questioning that he once posted that he thought Tesla share price was too high, and “it went higher, which is counter-intuitive.”
“What I’m trying to say is that the causal relationship is clearly not there simply because of a tweet,” Musk said in a testimony that lasted only thirty minutes and was to be continued on Monday.
The hearing on Friday began with Harvard law and business professor Guhan Subramanian, who was called as an expert witness by the plaintiffs.
He called Musk’s tweeted proposal to take Tesla private as “illusory” and “just wrong” in how it deviated wildly from the way such mega-deals usually take place.
“All I can say is this is just wrong; as a matter of deal process… this isn’t correct,” Subramanian said while being questioned by a defense lawyer about Musk’s tweets.
‘Reckless’ words
Testimonies in the trial opened Wednesday with a lawyer for the upset investors telling jurors Musk lied about having funding in place.
Nicholas Porritt, who represents lead plaintiff Glen Littleton and other Tesla investors, said the tweets cost “regular people” to lose “millions and millions of dollars.”
Called as the first witness, 71-year-old Littleton told jurors he was heavily invested in Tesla in 2018 in a way that banked on the share price climbing to $500 or more.
Littleton testified that he was “pretty shocked” by Musk’s tweet about taking the company private at $420 a share because it threatened almost all the money he had invested in Tesla.
“It was going to pretty much wipe me out,” Littleton said.
Littleton told jurors he scrambled to save what he could of his investments, getting out of most of his positions at a huge loss.
Musk is expected to continue testifying at trial on Monday, when his lawyers will get a chance to refute the accusation that he was being deceitful.
The case revolves around a pair of tweets in which Musk said “funding secured” for a project to buy out the publicly traded electric automaker, then in a second tweet added that “investor support is confirmed.”
Porritt told jurors that Musk had selected the $420 share price in the tweet “as a joke” and that the funding to take Tesla private was never locked in, nor credibly pursued.
In his own opening remarks, Musk attorney Alex Spiro said that even though the tweets may have been a “reckless choice of words”, they were “not fraud, not even close.”
The fraud trial is expected to last three weeks.
International
Uribe requests freedom amid appeal of historic bribery conviction
Former Colombian President Álvaro Uribe on Monday requested that the Supreme Court restore his freedom while he appeals the historic 12-year house arrest sentence he received for bribery and procedural fraud.
Uribe, the most prominent figure of Colombia’s right wing, was convicted last week by a lower court for attempting to bribe paramilitary members into denying his ties to the violent anti-guerrilla squads.
Since Friday, the 73-year-old has been under house arrest at his residence in Rionegro, about 30 km from Medellín. The judge justified the measure by citing a risk of flight.
However, Uribe’s defense team rejected that argument and formally petitioned the court to immediately lift the detention order, claiming it lacks legal basis.
Uribe, a dominant force in Colombian politics for decades, is now the first former president in the country’s history to be convicted and placed under arrest, found guilty of witness tampering and obstruction of justice to prevent links to paramilitary groups.
He has repeatedly denounced the trial as politically motivated, blaming pressure from the leftist government currently in power.
His political party, Centro Democrático, has called for nationwide protests on August 7 in support of Uribe, who remains popular for his hardline stance against guerrilla groups.
Uribe has until August 13 to submit his written appeal. The case will then move to the Bogotá High Court, which has until October 16 to uphold, overturn, or dismiss the sentence. If the deadline passes without a decision, the case will be archived.
International
U.S. Embassy staff restricted as gunfire erupts near compound in Port-au-Prince
The poorest country in Latin America and the Caribbean is currently engulfed in a deep political crisis and a wave of violence driven by armed groups — a situation that an international security mission led by Kenya is attempting to stabilize.
Due to the worsening security conditions, the U.S. government has suspended all official movements of embassy personnel outside the compound in Port-au-Prince, the U.S. State Department announced Monday in a security alert posted on social media platform X.
“There are intense gunfights in the Tabarre neighborhood, near the U.S. Embassy,” the alert reads, urging the public to avoid the area.
Tabarre is a municipality located near Port-au-Prince International Airport, northeast of the Haitian capital.
According to a July report by the UN High Commissioner for Human Rights, at least 3,141 people were killed in Haitibetween January 1 and June 30 of this year.
International
Israel says 136 food aid boxes airdropped into Gaza by six nations
The Israeli military announced on Sunday that 136 boxes of food aid were airdropped into Gaza by the United Arab Emirates, Jordan, Egypt, Germany, and Belgium.
“In recent hours, six countries conducted air drops of 136 aid packages containing food for residents in the southern and northern Gaza Strip,” read the statement, which added that the operation was coordinated by COGAT, the Israeli defense body overseeing civil affairs in the occupied Palestinian territories.
The Israeli military emphasized that they will “continue working to improve the humanitarian response alongside the international community” and reiterated their stance to “refute false allegations of deliberate famine in Gaza.”
The announcement comes as UN agencies warn Gaza faces an imminent risk of famine. More than one in three residents go days without eating, and other nutrition indicators have dropped to their worst levels since the conflict began.
The agencies also noted the difficulty of “collecting reliable data in current conditions, as Gaza’s health systems —already devastated by nearly three years of conflict— are collapsing.”
Meanwhile, Gaza’s Hamas-run Health Ministry reported on Sunday that hospitals in the enclave recorded six deaths from hunger and malnutrition on Saturday, all of them adults.
Uribe requests freedom amid appeal of historic bribery conviction
U.S. Embassy staff restricted as gunfire erupts near compound in Port-au-Prince
Israel says 136 food aid boxes airdropped into Gaza by six nations
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Uribe requests freedom amid appeal of historic bribery conviction