Musk testifies tweet that led to $44 billion lawsuit "may not have been my wisest"

Elon Musk testified in a San Francisco court that his viral May 13, 2022, tweet declaring his $44 billion Twitter acquisition 'temporarily on hold' was potentially 'incredibly stupid.' The tweet, sent without consulting advisers, caused Twitter's stock price to plummet 9% the same day. Shareholders allege this was a deliberate 'rope a dope' strategy, citing internal emails from bankers at Barclays suggesting Musk use the threat of walking away to renegotiate the price after he had already waived due diligence rights. The plaintiffs, who sold their shares at the resulting depressed price of around $30, claim Musk misled the market, as he was legally bound to complete the deal at $54.20 per share.

Musk defended himself by stating he was 'simply speaking my mind' about bot concerns to save the platform and that markets react unpredictably, like a 'manic depressive.' However, evidence presented includes a banker's email stating the 'threat of walking away may be sufficient to get them to agree to a lower price,' to which Musk replied, 'Matches my understanding of things.' The trial underscores the immense legal and financial repercussions of executive communications on social media, with shareholders seeking billions in damages. The outcome could set a major precedent for market manipulation cases involving public statements by high-profile CEOs on platforms like X (formerly Twitter).