Musk Testifies in Trial Alleging He Drove Down Twitter Stock
Elon Musk testified in a federal trial in San Francisco defending his 2022 takeover conduct as investors say his social media posts depressed Twitter's stock and cost them money.
PBS NewsHourMusk defends himself against accusations of misconduct prior to Twitter takeover
New York PostElon Musk discusses past tweets, bots as he testifies at Twitter shareholder trial
CBS NewsElon Musk testifies in Twitter shareholder trial alleging he purposefully drove down stock before his purchase
BBC NewsMusk tells jury 'people read too much' into his posts
Overview
Elon Musk took the witness stand in a federal trial in San Francisco to defend against investors' claims he manipulated Twitter's stock during his 2022 takeover.
Investors filed a class-action lawsuit in October 2022 alleging Musk used misleading posts, including a May 13, 2022 tweet saying the deal was 'temporarily on hold,' which they say drove down the stock.
Plaintiffs' attorneys told jurors Musk pursued a strategy to pressure the board, while Musk testified he was 'simply speaking my mind' and his attorneys said his complaints about bots were legitimate.
The case centers on Musk's $54.20-per-share offer and Twitter's $36.81 close on July 8, 2022—about 32% below the offer—as plaintiffs seek unspecified monetary damages.
The trial is expected to last three weeks and, if jurors side with investors, could require Musk to repay losses and influence other cases, including an SEC suit over disclosure timing.
Analysis
Center-leaning sources frame the story around Twitter's legal narrative, emphasizing allegations that Musk made 'false' statements and 'engaged in a scheme' that drove down stock. Editorial choices favor lawsuit language, highlight market harm and post-acquisition cuts ('gutted' trust and safety), and give less prominence to Musk's counterclaims or contextual defenses.
FAQ
Investors filed a class-action lawsuit claiming Musk manipulated Twitter's stock during his 2022 takeover through misleading social media posts. Specifically, they point to a May 13, 2022 tweet stating the deal was 'temporarily on hold,' which they argue artificially depressed the stock price and caused them financial losses.[1][2] Plaintiffs' attorneys contend Musk pursued a deliberate strategy to pressure Twitter's board, while the case highlights a significant gap between Musk's $54.20-per-share offer and Twitter's $36.81 closing price on July 8, 2022—approximately 32% below the offer.[1]
Musk testified that he was 'simply speaking my mind' and that his social media posts were not part of a calculated strategy to manipulate stock prices.[1] His attorneys argue that his complaints about bots on the platform were legitimate concerns, not misleading statements designed to pressure Twitter's board or depress the stock.[1]
If jurors side with the investors, Musk could be required to repay investors' losses, though the plaintiffs have not specified a dollar amount in their damages claim.[1] Additionally, a ruling against Musk could influence other pending legal cases, including an SEC civil lawsuit over disclosure timing related to Musk's 2022 Twitter stake accumulation.[1]
No. Beyond this shareholder class-action lawsuit, Musk is also facing a separate SEC civil lawsuit filed in January regarding his delayed disclosure of his 5% Twitter stake in March-April 2022.[1] The SEC alleges his late filing allowed him to save at least $150 million by continuing to purchase shares at lower prices before revealing his position.[1] Additionally, a federal judge in March allowed another shareholder lawsuit alleging fraud from Musk's disclosure delay to proceed.[1]
The federal trial in San Francisco is expected to last approximately three weeks.[1] It represents significant legal scrutiny of Musk's 2022 takeover conduct and could establish precedent for how courts view his actions during the acquisition process, with potential implications for related cases and Musk's regulatory standing.[1]