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Tesla chair testifies she would have quit if Musk had lied in 2018 tweets

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Summary

The chair of Tesla Inc defended CEO Elon Musk in a securities fraud trial on Friday, saying that if she had thought Musk lied by tweeting in 2018 that he had "funding secured" to take Tesla private, she would have quit as a director. Witnesses including Egon Durban of Silver Lake and Dan Dees of Goldman Sachs testified that there was no binding agreement with investors, despite their interest. The jury of nine will decide whether Musk artificially inflated the company's share price by touting the buyout's prospects, and if so, by how much.

Q&As

What did Tesla board Chair Robyn Denholm say about Elon Musk's 2018 tweets?
Robyn Denholm said that she would have quit as a director if she had thought Musk lied by tweeting in 2018 that he had "funding secured" to take Tesla private.

What did investors allege about the tweets?
Investors alleged that they lost billions of dollars because of Musk's Aug. 7, 2018, tweets that he had "funding secured" and "investor support confirmed" to take Tesla private at $420 per share.

How did Tesla and Musk settle with the SEC?
Tesla and Musk paid $40 million in penalties to settle the allegations with the SEC, but did not admit wrongdoing.

What did Egon Durban and Dan Dees testify about the "funding secured" tweet?
Egon Durban testified that he had advised Musk on the going-private proposal, but that there were uncertainties as to whether the transaction could proceed. Dan Dees testified that the "funding secured" tweet came as a surprise to him, as Goldman, which had long worked with Tesla, was not involved in the deal.

What will the jury decide and when will the trial resume?
The jury will decide whether Musk artificially inflated the company's share price by touting the buyout's prospects, and if so, by how much. The trial is scheduled to resume on Tuesday.

AI Comments

👍 Robyn Denholm showed her commitment to integrity by stating that she would have quit the Tesla board if she thought Elon Musk had misled the public with his 2018 tweets.

👎 Despite Robyn Denholm's commitment to integrity, Elon Musk's 2018 tweets still caused investors to lose billions of dollars due to the false promises of a Tesla buyout.

AI Discussion

Me: It's about the Tesla board chair testifying that she would have quit if Elon Musk had lied in his 2018 tweets.

Friend: Wow, that's a big deal. What kind of implications does this have?

Me: Well, it could be interpreted as a sign that the board is taking compliance seriously, and that they are willing to stand up to Musk if they feel he's not being honest. It also shows that the board is willing to take strong action if they think the company is not following the rules. On the other hand, it could also be seen as a sign of tension between Musk and the board, and that the board may not be willing to support Musk in the way that they have in the past.

Action items

Research the Securities and Exchange Commission's regulations on insider trading and disclosure of material information.
Follow the Twitter accounts of Goldman Sachs Group Inc, Tesla Engineering, and Tesla Inc to stay up to date on the latest news and developments.
Attend a webinar or seminar on corporate governance and litigation regulatory oversight to gain a better understanding of the legal implications of the case.

Technical terms

Litigation: A legal dispute between two or more parties that is brought to a court of law for resolution.
Regulatory Oversight: The process of monitoring and enforcing compliance with laws, regulations, and other rules.
Securities Fraud: A type of financial fraud involving the misrepresentation of material facts related to the sale or purchase of securities.
Going Private: A process in which a publicly traded company is taken private by a private equity firm or other investors.
Investor Support: A commitment from investors to provide financial support for a company or project.
Binding Agreements: A legally enforceable contract between two or more parties.
Retail Shareholders: Individuals who own shares of a company's stock.
Artificially Inflating: Manipulating the price of a security or other asset in order to increase its value.
Touting: Promoting or advertising a product or service.