Elon Musk, at Trial, Says He Was Sure Saudis Backed Taking Tesla Private

SAN FRANCISCO—Elon Musk On Monday, he testified that he was certain he had support from Saudi financiers in 2018 for Tesla Inc’s privatization. However, he later said that the fund had withdrawn its promise.

At a trial in San Francisco federal court, Musk told the investors’ lawyer Nicholas Porritt that he met on July 31, 2018, with representatives of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, at Tesla’s Fremont, California, factory.

Musk admitted that he didn’t discuss a price for a takeover with the Saudi fund representatives, but stated they had made it clear they would do whatever it took to make a purchase possible.

“PIF unequivocally wanted to take Tesla private,” He testified.

Musk later stated that Yasir al-Rumayyan (the governor of the fund), later backedpedaled on his promise to take Tesla private.

“I was very upset because he had been unequivocal in his support for taking Tesla private when we met and now he appeared to be backpedaling,” Musk testified.

Al-Rumayyan’s attorneys did not immediately respond to a request for comment.

The lawyer for the investors told the court that written evidence does not support Musk’s claim that the Saudi fund made a commitment to him, adding that minutes of a meeting between Musk and the Saudis showed the Saudis wanted to learn more about Musk’s plan.

Musk defends himself against accusations that he defrauded his investors. Musk posted on Twitter, August 7, 2018, that he had received a request from a client. “funding secured” Tesla Private for $420 Per Share “investor support is confirmed.”

Investors say they lost millions as a result of Musk’s tweets.

The trial tests Musk’s penchant for taking to Twitter to air his sometimes irreverent views, and when the world’s second-richest person can be held liable for crossing a line.

Tesla’s stock price surged after Musk’s tweets, and later fell as it became clear the buyout would not materialize.

A jury of nine will decide whether the Tesla CEO artificially inflated the company’s share price by touting the buyout’s prospects, and if so by how much.

U.S. Judge Edward Chen ruled last May that Musk’s post was untruthful and reckless.

But in Monday’s testimony, Musk said he believed he could have sold enough shares of his rocket company SpaceX to fund a buyout, and “felt funding was secured” SpaceX stock by itself.

Musk claimed that he meant to tweet the announcement of the deal when he did so. “not that it will happen, but that I am thinking about it” And that funding was secured in his “opinion.”

‘Not a Joke’

The U.S. Securities and Exchange Commission sued Musk over his tweets. This led to $40 million in settlements between him and Tesla, and the requirement that a Tesla lawyer screen some tweets.

The SEC had alleged that Musk rounded the alleged buyout offer to $420 per share from $419 because he had recently learned about the higher amount’s “significance in marijuana culture” He thought his girlfriend would find it hilarious.

Musk denied that he had thought it.

“It was chosen because it was a 20 perceent premium over the stock price,” He testified. “The $420 price was not a joke.”

On Friday, he began to testify, saying that although Twitter was his most democratic method of communicating, it did not always have the same effect on Tesla stock as he expected.

“Just because I tweet something does not mean people believe it or will act accordingly,” Musk spoke.

Spiro claimed that former and current Tesla directors are also among the defendants. “pure” motives in their response to Musk’s plan.