WEBVTT 1 00:00:00.210 --> 00:00:02.400 - We saw Elon Musk testify this week 2 00:00:02.400 --> 00:00:07.050 in a securities fraud trial all stemming from a 2018 tweet. 3 00:00:07.050 --> 00:00:08.670 Blake Montgomery joins us now, 4 00:00:08.670 --> 00:00:11.160 he's a Deputy Editor at Gizmodo, to further discuss. 5 00:00:11.160 --> 00:00:12.990 And Blake, there's been a lot of headlines 6 00:00:12.990 --> 00:00:14.370 coming out of this trial this week. 7 00:00:14.370 --> 00:00:18.907 Let's just start with one of the more interesting ones, 420. 8 00:00:18.907 --> 00:00:20.160 What was that all about? 9 00:00:20.160 --> 00:00:21.810 Apparently not weed, I don't know. 10 00:00:21.810 --> 00:00:23.160 - That's what Elon Musk said 11 00:00:23.160 --> 00:00:25.620 in an effort to save himself tens of millions of dollars, 12 00:00:25.620 --> 00:00:27.330 which, to be fair, I would also say 13 00:00:27.330 --> 00:00:29.640 if I were on the hook for tens of millions of dollars, 14 00:00:29.640 --> 00:00:32.220 or even hundreds, billions. 15 00:00:32.220 --> 00:00:34.920 The stakes of the trial are high. 16 00:00:34.920 --> 00:00:36.360 Tesla investors are suing. 17 00:00:36.360 --> 00:00:38.733 They say his tweet, where he said, 18 00:00:42.021 --> 00:00:43.320 "Considering taking Tesla private at $420 a share. 19 00:00:43.320 --> 00:00:45.300 Funding secured" cost them tens of millions of dollars 20 00:00:45.300 --> 00:00:46.440 in stock value. 21 00:00:46.440 --> 00:00:48.150 - Yeah, I would be upset 22 00:00:48.150 --> 00:00:50.610 if I was one of those investors as well. 23 00:00:50.610 --> 00:00:54.953 I do want to talk about that tweet though in general. 24 00:00:54.953 --> 00:00:56.700 He said that he didn't really think 25 00:00:56.700 --> 00:00:59.160 that he even carried that much weight, 26 00:00:59.160 --> 00:01:02.670 what he had to say online wouldn't even matter. 27 00:01:02.670 --> 00:01:03.690 - Yeah, in the trial, 28 00:01:03.690 --> 00:01:06.840 he said Tesla's stock price goes up and down all the time. 29 00:01:06.840 --> 00:01:09.060 When he says he tweets, 30 00:01:09.060 --> 00:01:12.240 he doesn't necessarily expect people to take action. 31 00:01:12.240 --> 00:01:13.320 It's a tough sell 32 00:01:13.320 --> 00:01:16.830 to say the CEO of a company's public statements 33 00:01:16.830 --> 00:01:18.630 don't matter, basically. 34 00:01:18.630 --> 00:01:20.910 And then his lawyer said he used the wrong words. 35 00:01:20.910 --> 00:01:23.370 He was in a rushed and reckless state of mind. 36 00:01:23.370 --> 00:01:25.770 But then the investor's lawyer pointed out 37 00:01:25.770 --> 00:01:27.210 they kept using the wrong words. 38 00:01:27.210 --> 00:01:29.400 Tesla put out a press release to the same effect. 39 00:01:29.400 --> 00:01:32.490 So we're sort of left wondering, 40 00:01:32.490 --> 00:01:35.460 how many times can you repeat the wrong words 41 00:01:35.460 --> 00:01:38.610 and still have it be an honest mistake? 42 00:01:38.610 --> 00:01:40.080 - All right, anything else interesting 43 00:01:40.080 --> 00:01:43.470 or that made headlines this week that you wanted to discuss? 44 00:01:43.470 --> 00:01:45.690 - He just is kind of being Elon Musk on the stand. 45 00:01:45.690 --> 00:01:46.523 At one point, 46 00:01:46.523 --> 00:01:50.550 he said even without the Saudi Arabian wealth fund deal, 47 00:01:50.550 --> 00:01:52.230 he could have raised money anyway. 48 00:01:52.230 --> 00:01:53.730 He said he kind of had a Midas touch. 49 00:01:53.730 --> 00:01:56.010 He's never had trouble raising money before. 50 00:01:56.010 --> 00:01:57.750 Has shares in another one of the companies 51 00:01:57.750 --> 00:01:59.100 that he's CEO of, SpaceX, 52 00:01:59.100 --> 00:02:01.050 and said, I can use that as collateral 53 00:02:01.050 --> 00:02:04.170 to fund the Tesla privatization, but he didn't. 54 00:02:04.170 --> 00:02:05.100 - Yeah, of course, a lot of news 55 00:02:05.100 --> 00:02:06.300 coming out of the trial this week. 56 00:02:06.300 --> 00:02:08.130 It is a trial we will continue to follow. 57 00:02:08.130 --> 00:02:10.380 You can find more information at gizmodo.com.