Saudi PIF Governor Yasir Al-Rumayyan Subpoenaed in Elon Musk's 2018 Tesla Tweet Case

USA - Ekhbary News Agency

PIF Governor Al-Rumayyan Subpoenaed in Musk Tesla Case

In a significant development in the ongoing litigation surrounding Elon Musk's controversial 2018 tweet, the legal team representing the Tesla CEO has subpoenaed Yasir Al-Rumayyan, the governor of Saudi Arabia's Public Investment Fund (PIF). This move is part of the legal proceedings concerning Musk's assertion that he was considering taking the electric vehicle company private and had secured funding to do so.

Background of the Case and Musk's Tweet

Elon Musk has long maintained that he was seriously contemplating the privatization of Tesla at the time he published the tweet. He stated that his comment about "funding secured" was based on discussions he had with Saudi Arabia's massive sovereign wealth fund. Musk claimed the PIF had urged him to take the company private and offered to increase its investment in Tesla. The PIF is known for investing in entities crucial for economic growth and reported managing $620 billion in assets as of early 2022.

Musk's Legal Team's Strategy

Musk's legal team is now seeking to have Yasir Al-Rumayyan testify as part of the litigation. According to a subpoena filed in December and unsealed on Tuesday, the team also subpoenaed three other members of the Saudi PIF.

PIF Declines to Comment

The Saudi Public Investment Fund has declined to comment on the subpoenas when contacted by CNN.

Shareholder Lawsuit and Tweet's Impact

The case originates from a lawsuit filed by Tesla shareholders in 2018. They alleged that Musk did not have "funding secured" to take the company private at $420 per share, as he had stated in his tweet that year. This tweet caused significant volatility in Tesla's stock, which investors claimed harmed their portfolios.

Musk's Settlement with the SEC

Musk eventually settled with the U.S. Securities and Exchange Commission (SEC) over the tweets. As part of the agreement, he stepped down as Tesla's chairman and agreed to have his social media use overseen. However, he has appeared to violate this agreement on multiple occasions since then.

Significance of the Subpoena and Potential Ramifications

The subpoena issued to the head of Saudi Arabia's PIF is a critical development in the ongoing legal battle. It could significantly influence the direction of the litigation, as Musk's team aims to use Al-Rumayyan's testimony to bolster their argument that funding was indeed available. This situation highlights the substantial influence of major investment entities, such as sovereign wealth funds, in the global corporate and technology landscape.