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Musk said he could have funded a Tesla buyout with SpaceX shares

Elon Musk testified Monday that he was not only certain he’d have the backing from Saudi financiers to take Tesla private in 2018, but also that he could have sold enough shares of his rocket company SpaceX to fund a buyout.

Musk defended himself as part of an ongoing lawsuit against the CEO for allegedly defrauding investors by tweeting on August 7, 2018 that he had secured funding to take Tesla private at $420 per share and that “investor support is confirmed.” Tesla’s stock price surged after Musk’s tweets and later dropped when it became clear the buyout wouldn’t happen. Investors say they lost millions as a result of Musk’s tweets.

While Musk does stand to lose billions of dollars in damages if he loses the case, what’s really at stake for the world’s richest man is his reputation for being truthful and for looking after his investors.

In a San Francisco federal court, Musk doubled down on his belief that he had a verbal confirmation from the Saudi Arabian Public Investment Fund (PIF) to take Tesla private. Musk testified that the fund “backpedaled” on its commitment. He also acknowledged that no takeover price had been discussed with representatives of the PIF.

Even without the PIF money, he “felt funding was secured” with SpaceX stock alone. Musk nodded toward his sales of Tesla stock to buy Twitter, and said he would have considered doing the same thing to make the deal to take Tesla private go through.

The plaintiff’s lawyers countered that since Musk’s deposition from last year didn’t include any reference to selling SpaceX stock, today’s inclusion of that point was constructed in hindsight.

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