Home » Elon Musk subpoenas head of Saudi Arabia wealth fund over Tesla tweet

Elon Musk subpoenas head of Saudi Arabia wealth fund over Tesla tweet

by admin

Elon Musk ousted the head of Saudi Arabia’s public investment fund in a lawsuit over a 2018 tweet in which Tesla’s chief executive claimed that “funds were secured” to take the electric car maker private. summoned.

According to court documents filed in California federal court on Tuesday, Tesla’s legal team filed documents with PIF Governor Yasir Al-Rumayyan’s office manager on Dec. 19. Musk’s team has asked al-Rummayyan, who is also the chairman of Saudi Aramco, to testify at the trial, which is set to begin in San Francisco later this month.

A final testimony from al-Rummayyan can focus on the arguments made by the PIF. Musk before his “Funds Secured” declaration. The investor who filed the lawsuit alleges that Musk manipulated Tesla’s stock price when he tweeted in August 2018 that he raised money to take the electric car maker private at $420 a share. claimed to have done so. The deal never materialized.

Musk has previously said in public and court documents that a “handshake” deal was struck with Al Rumayyan to raise the funds needed for the fundraiser. Tesla from the open market.

But the lawsuit filings reveal how Musk’s relationship with Al Rumayyan fell apart after Bloomberg reported that the PIF was merely discussing the idea of ​​going private.

“You said you were absolutely interested in taking Tesla private and have wanted to do so since 2016. Bus,” according to a “weak source” statement issued by PIF in response to the story. is.

Musk added: “You have also made it clear that you are the decision maker. In addition, you strongly urge the Crown Prince, who sees this as strategically important at the national level. It is supported.”

In response, Al-Rumayyan wrote that the fund had not received the necessary financial information from Tesla and that it would “take two hours to tango.”

“Look at the numbers, let us meet and talk to our people. So don’t treat me like an enemy. ”

After a failed funding round, Musk turned to other outside investors to take Tesla private, but within two weeks abandoned the idea.

Musk’s legal team did not respond to a request for comment on the subpoena. Three other of his PIF executives have also served time, according to court filings. PIF said it had no comment at this time.

The trial will begin on January 17th and will last approximately 10 days. Musk is among the potential witnesses. Member of Tesla’s Board of Directors, Chief Financial Officer and Head of Investor Relations. There are also Silicon Valley luminaries such as his partner Egon Durbin, managing Silver Lake, and Larry Ellison, co-founder of Oracle and Musk’s best friend.

The “funding secured” tweet has already proven costly for Musk. He and Tesla each paid $20 million to settle lawsuits from the U.S. Securities and Exchange Commission. Musk retained his position as CEO, but had to step down as chairman of Tesla as well.

Tesla shares fell Tuesday It fell nearly 14% following the announcement of lower-than-expected deliveries in the final quarter of 2022. The company’s stock has fallen 73% in the past 12 months.

Additional reporting by Samer Al-Atrush, Dubai

Related Posts

Leave a Comment