Proactive Investors - Elon Musk thought he was “doing the right thing” over his 2018 tweet that claimed funding had been secured to take Tesla Inc (NASDAQ:TSLA) private, he said in his defence of a lawsuit brought by investors who claim to have lost out.
Musk said, “I had no ill motive,” adding he intended to “do the right thing by shareholders,” while testifying in a San Francisco court on Tuesday.
He claimed funding had not been an issue in the final decision not to wholly buy out the firm, arguing instead that he wanted to “be responsive” to shareholders’ wishes that Tesla remained listed.
A deal had indeed been on the cards, according to documents showing Musk had worked with Goldman Sachs (NYSE:GS) on the proposal, but no binding agreement had ever been made, he admitted.
Musk faces the lawsuit after he tweeted in 2018 that he had the US$72bn worth of funding needed to take Tesla private.
Am considering taking Tesla private at $420. Funding secured.— Elon Musk (@elonmusk) August 7, 2018
Shareholders suggest they lost millions as a result, accusing Musk of fraud and for attempting to artificially inflate his company’s share price.
Tesla shares fell and then soared some 11% after his tweet, prompting to US Securities and Exchange Commission to fine Tesla and Musk US$40mln collectively and force him to step down as company chairman.