During the ongoing class-action lawsuit against Elon Musk over accusations that he committed securities fraud, he said: “It is relatively easy for me to get investment support because my track record is extremely good,” according to the Associated Press.
Musk’s confidence to raise money for investment plans is the reason why he landed in court in a three-week trial, which is set to resume Tuesday and head for jury deliberations by Friday.
The case is centered on two August 2018 tweets that the tycoon posted on Twitter. The Tesla founder claimed funding was secured for a potential buyout, but that the deal never went through.
Tesla shareholders accused Musk of illegally manipulating Tesla’s stock price, saying that Tesla shares would not have swung so widely in value if he had not dangled the idea of buying the company for $420 per share.
Recently in court Musk testified that he had “no ill motive,” and that his “intent was to do the right thing for all shareholders.”
Guhan Subramanian, a Harvard University business and law professor hired as an expert for shareholder lawyers, said that Musk’s announcement of a potential buyout was fraught with potential conflicts.
“The risk is that Mr. Musk timed his announcement of his [management buyout] proposal to serve his own interests rather than the interests of the company,” Subramanian testified.
Musk said in court on Jan. 24 that he could have sold shares of SpaceX to fund a Tesla buyout.
Former Tesla director Antonio Gracias had no doubt the money for a buyout could have been raised.
“He is the Michael Jordan of fundraising,” Gracias testified, referring to the legendary basketball star.
