SAN FRANCISCO – Billionaire entrepreneur Elon Musk testified before a California jury on Wednesday, asserting that financial markets overanalyze his social media communications. The testimony forms part of Musk’s defense against allegations that he deliberately manipulated markets through misleading tweets preceding his 2022 acquisition of Twitter.
Musk characterized his posts following the initial acquisition agreement as “extremely literal” statements rather than tactical maneuvers to renegotiate the purchase price. “I was simply speaking my mind,” Musk stated when questioned about his awareness of the market impact caused by his declaration that the takeover was “on hold.”
The litigation represents the first courtroom battle stemming from Musk’s $44 billion Twitter acquisition. While Musk has previously defeated legal challenges regarding his social media communications involving Tesla investors and defamation claims, this class action lawsuit initiated by individual investors seeks unspecified monetary damages for alleged financial losses.
Lead plaintiff Brian Belgrave testified Monday that he sold thousands of Twitter shares in July 2022 based on his interpretation that Musk was abandoning the acquisition. Belgrave liquidated his position below both his original purchase price and the eventual $54.20 per share that Musk paid after Twitter successfully sued to enforce the merger agreement. “I got screwed. I got cheated,” Belgrave told the court.
Plaintiffs’ attorney Aaron Arnzen presented a theory that Musk employed strategic negotiation tactics comparable to boxing’s “rope-a-dope” technique – intentionally allowing Twitter to exhaust itself to gain bargaining leverage. When questioned about this approach, Musk conceded he “may have” utilized such strategies.
Throughout Wednesday’s proceedings, Musk initially provided terse responses limited to “yes,” “no,” or “I don’t recall” before later accusing Arnzen of “trying to mislead the jury” through his questioning methodology. Presiding Judge Charles Breyer briefly paused testimony to address the witness before allowing proceedings to continue.
The trial, expected to span three weeks, also featured testimony from Jared Birchall, head of Musk’s family office, who repeatedly responded to questions about Twitter acquisition discussions with “I don’t recall” – including questions about whether Jack Dorsey served as Twitter’s CEO prior to Musk’s takeover bid. Dorsey had led the company for seven years before stepping down just months before Musk’s acquisition attempt.