Elon Musk Testifies in Twitter Shareholder Trial
Elon Musk appeared in a U.S. federal court this week to testify in a lawsuit filed by former Twitter shareholders who claim his public statements about the company misled investors during his 2022 takeover of the social media platform.
The case centers on whether Musk’s tweets and comments about Twitter influenced the company’s stock price while he was negotiating to buy it. Musk eventually purchased the platform for about $44 billion and later rebranded it as X.
Shareholders argue that some of Musk’s statements created uncertainty about the deal and pushed the stock price lower, causing financial losses for investors who sold their shares during that period.
Investors Claim Tweets Manipulated the Market
The lawsuit focuses on several tweets Musk posted in May 2022, including one where he said the deal to buy Twitter was “temporarily on hold.”
Following that post, Twitter’s share price dropped significantly. Some investors say the tweet caused panic in the market and led many shareholders to sell their stock at lower prices.
The plaintiffs argue that Musk knew he was still obligated to complete the acquisition and that his tweets created confusion about the status of the deal.
They are seeking billions of dollars in damages, claiming the statements violated U.S. securities laws.
Musk Defends His Statements
During his testimony, Musk denied trying to manipulate the market. He said his tweets reflected genuine concerns about the number of fake or automated accounts on the platform.
At the time, Twitter estimated that less than 5% of its users were bots, a figure Musk publicly questioned. He argued that the true number could be higher and said he wanted more transparency before moving forward with the deal.
Musk also told the court he did not believe his tweets would significantly affect Twitter’s stock price.
In a lighter moment during testimony, Musk acknowledged that his social media posts can sometimes be controversial, joking that if the case were about “stupid tweets,” he might be guilty.
Background of the Twitter Takeover
Musk first began buying Twitter shares in early 2022 and soon became the company’s largest shareholder. In April that year, he offered to acquire the platform for $54.20 per share, valuing it at roughly $44 billion.
However, the deal later became complicated when Musk raised concerns about fake accounts on the platform and attempted to withdraw from the agreement.
Twitter sued Musk in a Delaware court to force him to complete the purchase. The dispute ended in October 2022 when Musk finalized the acquisition.
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After taking control, he rebranded Twitter as X and introduced major changes to the platform.
What Comes Next
The shareholder trial is expected to continue for several weeks. A jury will decide whether Musk’s tweets and public comments violated securities laws and whether investors suffered financial losses as a result.
If Musk is found liable, he could face significant financial penalties. Musk has denied any wrongdoing and maintains that his comments were legitimate and based on real concerns about the platform.