Elon Musk admits he did not have a “specific number” to finance the purchase of Tesla

Elon Musk admits he did not have a “specific number” to finance the purchase of Tesla

  • Elon Musk admitted he did not have a “specific number” for how much funding was needed to take Tesla private, according to Reuters.
  • Tesla investors are suing the billionaire CEO for millions of dollars in damages after his notorious “financing secured” tweet.
  • “Funding was not an issue at all,” Musk said. “It was the complete opposite.”

Elon Musk said he did not have a “specific number” for how much funding was needed to secure his plan to take Tesla off the stock market, and admitted he had no binding commitments from investors.

Musk evaded simple “yes” or “no” answers to questions posed by Nicholas Porritt, an investor lawyer, about the guarantee of funding promises from Saudi Arabia’s sovereign wealth fund, according to a Reuters report. This prompted the judge to step in and ask if a specific dollar amount was discussed, rather than concepts.

“It’s not a specific number,” Musk said in federal court in San Francisco, according to the report.

Tesla investors are suing the billionaire CEO for millions of dollars in damages after he tweeted that he had “funds secured” to take the automaker private at $420 a share in 2018. The company’s shares initially rose after the tweet, but they fell off once it became clear that the purchase was a no-go.

Earlier this week, Musk testified that he sent the notorious tweet only after Yasir Al-Rumayyan, the governor of Saudi Arabia’s Private Investment Fund, verbally expressed support for the purchase plan, but the Saudi investor backed down. in your plans.

However, he maintained that securing the financing was no big deal, telling jurors he could have sought funding from a number of different sources, such as existing shareholders including Oracle Corp, or dipping into his own fortune and selling SpaceX stock.

“Funding was not an issue at all,” Musk said in court on Tuesday. “It was the complete opposite.”

The jury was shown board meeting documents in which Goldman Sachs, which was working with Musk on the proposed purchase at the time, had suggested there would be more than enough funds to take the company private, Reuters reported.

Musk also told the court that Google had “an enduring interest” in buying the car company.

As the trial continues over the next week, the jury will decide whether Musk can be held accountable for his tweets.

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