Tesla (NASDAQ:TSLA) CEO Elon Musk testified on Monday that the Saudi Arabia wealth fund “unequivocally” wanted to take the company private when he posted his infamous “funding secured” tweet in 2018. Musk also said the $420 offer price quote was a coincidence and not a joke based on the number’s association with marijuana. Subsequent to the tweet, Musk signed a nondisclosure memo with the Saudi wealth fund about further talks, but the deal talks fell apart.
The judge in the San Francisco case has already ruled that some of Musk’s statements about taking the company private were untrue at the time they were posted. Meanwhile, the defense has noted that Musk did not own enough Tesla shares to direct any sale all by himself. Ultimately, a jury will decide if Musk artificially inflated the price of Tesla shares and if damages should be awarded to shareholders who lost money when the deal did not occur.
What’s ahead: Tesla (TSLA) is only two days out from reporting earnings and has an investor event scheduled for March 1 that could also be a catalyst for shares.
Ahead of the earnings report shares of Tesla (TSLA) ran up a 6.33% gain on Monday as of 3:20 p.m. and are up more than 30% in 2023 so far.
Read the latest breakdowns on Tesla from Seeking Alpha authors.