Tag Archives: Social media

Business

Meta ‘Year of Efficiency’ call from Zuckerberg was what Street needed

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Mark Zuckerberg, chief executive officer of Meta Platforms Inc., center, departs from federal court in San Jose, Calif., on Dec. 20, 2022.

David Paul Morris | Bloomberg | Getty Images

With one simple slogan, Meta CEO Mark Zuckerberg temporarily quelled investor discontent with his company’s multibillion-dollar investment into the futuristic metaverse.

“Our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization,” Zuckerberg said as part of the release of Meta’s fourth-quarter earnings report.

Following a 64% plunge in Meta’s share price in 2022, Wall Street cheered the report, sending the stock up almost 20%, extending a rally that began late last year. Based on after-hours pricing, Meta is trading at its highest since July.

Growth is not what’s getting investors excited. Meta reported better-than-expected revenue in the fourth quarter, but sales still sank 4% from a year earlier, marking the third straight quarterly decline. And the forecast range for the first quarter suggests that year-over-year revenue could increase, but it could also fall again.

Rather, Zuckerberg’s commitment to cost cuts and efficiency is a sign that increasing profitability is important to Meta, which was known as a growth machine prior to last year’s slump.

“The first 18 years I think we grew it 20%, 30% compound or a lot more every year,” Zuckerberg said on the earnings call. “And then obviously that changed very dramatically in 2022, where our revenue was negative for growth, for the first time in the company’s history.”

In looking to the future, Zuckerberg struck a realistic tone.

“We don’t anticipate that that’s going to continue,” he said, regarding the recent drop in revenue. “But I also don’t think it’s going to go back to the way it was before.”

Meta lowered its estimates for total expenses in 2023 to be in the range of $89 billion to $95 billion, down from its prior outlook of $94 billion to $100 billion. In November, the company announced it would lay off over 11,000 workers, or 13% of its staff.

Zuckerberg said Meta will be more “proactive on cutting projects that aren’t performing or may no longer be crucial” and that it will emphasize “removing layers of middle management to make decisions faster.”

Meta is also reducing spending as it builds new data centers that are intended to be more efficient while still able to power the company’s various artificial intelligence technologies. Capital expenditures are now expected to be in the range of $30 billion to $33 billion for 2023 instead of $34 billion to $37 billion.

Zuckerberg is selling investors on a story they want to hear, acknowledging that the company got bloated and needed more financial discipline. One of Zuckerberg’s top deputies, technology chief Andrew “Boz” Bosworth, wrote a personal essay just a few days ago echoing that sentiment.

Still, Meta has plenty of challenges ahead, in terms of both costs and reviving its core ad business.

Meta’s Reality Labs unit, which is responsible for developing the nascent metaverse, lost $13.7 billion in 2022. Finance chief Susan Li told analysts that the company isn’t planning for any reduction in that unit anytime soon. Zuckerberg still sees it as the company’s future.

Digital advertising, meanwhile, is suffering from a struggling economy, and Li gave no indication that companies are planning to dramatically increase their spending in 2023.

Meta has also yet to recover from Apple’s 2021 iOS privacy update that made it harder to target users with ads. Li said the company has been improving its online advertising system, but Apple’s update is “still certainly an absolute headwind to our revenue number.”

During the question and answer part of the call, Zuckerberg was asked about Meta’s progress in generative artificial intelligence, which has become the latest hot thing in Silicon Valley. His answer indicated that Meta is pursuing opportunities there, but will be cautious in how quickly it proceeds. Running these programs is expensive, and Meta needs to ensure it can develop them affordably, he said.

Zuckerberg said that while Meta is researching how best to incorporate the new technology, he wants “to be careful not to get too ahead of the development of it.”

Correction: Meta’s earnings report and CEO Mark Zuckerberg’s comments occurred after the market close on Wednesday. An earlier version misstated the day.

WATCH: Meta grows in daily active users, shares pop on revenue beat

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Entertainment

Cindy Williams, ‘Laverne & Shirley’ star, dead at 75

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CNN
 — 

Cindy Williams, the dynamic actress known best for playing the bubbly Shirley Feeney on the beloved sitcom “Laverne & Shirley,” has died, according to a statement from her family, provided to CNN by a representative. She was 75.

Williams died after a short illness, said the statement from her children Zak and Emily Hudson, provided to CNN by family spokesperson and Williams’ personal assistant Liz Cranis.

“The passing of our kind, hilarious mother, Cindy Williams, has brought us insurmountable sadness that could never truly be expressed,” their statement read. “Knowing and loving her has been our joy and privilege. She was one of a kind, beautiful, generous and possessed a brilliant sense of humor and a glittering spirit that everyone loved.”

Williams had credits spanning six decades, but it was her role on “Happy Days” spin-off “Laverne & Shirley” that endeared her to millions and made her a household name.

On the series, she starred opposite the late Penny Marshall as one half of a dynamic friend duo whose adventures powered the show, which ran for eight seasons from 1976-1983.

Born in Van Nuys, California, Williams’ interest in acting throughout high school led her to studying theater at Los Angeles City College, according to a biography provided by her family. Some of Williams’ first professional acting credits include a three-episode arc on the 1969 series “Room 222” and appearances on other shows, like “Nanny and the Professor” and “Love, American Style,” in the early 1970’s.

Williams went on to become a prolific working television and film actor, appearing in dozens of titles. But it was after she first appeared as Shirley Feeney on “Happy Days” in 1975 that her career began to take shape.

The lighthearted “Laverne & Shirley” proved to be a ratings hit and earned six Golden Globe nominations, including two for best comedy series and one for Williams in the best actress in a comedy category.

Williams also appeared in several standout films. Most notably, she starred in George Lucas’ 1973 film “American Graffiti,” which earned Williams a British Academy Film Awards nomination for best supporting actress. The film, about a group of friends who spend one wild night together before leaving for college, went on to be nominated for five Oscars, including best picture, at the 1974 Academy Awards. Williams also had roles in acclaimed films “Travels with My Aunt” by George Cukor’ in 1972 and “The Conversation” from director Francis Ford Coppola in 1974.

Williams was also an accomplished stage actress, with a long list of credits. Last year, she took her one-woman show, “Me, Myself and Shirley,” where she shared stories from throughout her career, on a national tour. She had at least one series of dates scheduled for later this year.

Upon news of her passing, Williams’ friends and fans took to social media to honor the late actress, who left a legacy of laughter.

“Happy Days” star and film director Ron Howard tweeted that Williams’ “unpretentious intelligence, talent, wit & humanity impacted every character she created & person she worked with,” going on to say that the pair worked together on six different projects together. “Lucky me,” he added.

Henry Winkler, who played Fonzie on “Happy Days,” called Williams “a fine and talented human being” on Twitter.

“Oh how I loved Cindy Williams,” Yvette Nicole Brown, who worked with Williams in 2016 when she guest starred in an episode of CBS’s “The Odd Couple,” shared on Twitter. “She was as lovely as I always imagined she’d be.”

Actor Jason Alexander wrote on Twitter: “I did not know Cindy Williams but boy did I adore her work, especially the wacky joyful funny pleasure of watching her Laverne and Shirley days. I pray she had a good life and send my sympathy to those who knew and loved her.”

Williams’ children added in their statement that they were proud of their mother for many reasons – “her lifelong mission to rescue animals, her prolific artistry, her faith” among them – but “most of all, her ability to make the world laugh!”

“May that laughter continue in everyone, because she would want that,” the statement said. “Thank you for loving our Mom, she loved you too.”



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Health

Surgeon General says 13 is ‘too early’ to join social media

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CNN
 — 

US Surgeon General Vivek Murthy says he believes 13 is too young for children to be on social media platforms, because although sites allow children of that age to join, kids are still “developing their identity.”

Meta, Twitter, and a host of other social media giants currently allow 13-year-olds to join their platforms.

“I, personally, based on the data I’ve seen, believe that 13 is too early … It’s a time where it’s really important for us to be thoughtful about what’s going into how they think about their own self-worth and their relationships and the skewed and often distorted environment of social media often does a disservice to many of those children,” Murthy said on “CNN Newsroom.”

The number of teenagers on social media has sparked alarm among medical professionals, who point to a growing body of research about the harm such platforms can cause adolescents.

Murthy acknowledged the difficulties of keeping children off these platforms given their popularity, but suggested parents can find success by presenting a united front.

“If parents can band together and say you know, as a group, we’re not going to allow our kids to use social media until 16 or 17 or 18 or whatever age they choose, that’s a much more effective strategy in making sure your kids don’t get exposed to harm early,” he told CNN.

Adobe Stock

New research suggests habitually checking social media can alter the brain chemistry of adolescents.

According to a study published this month in JAMA Pediatrics, students who checked social media more regularly displayed greater neural sensitivity in certain parts of their brains, making their brains more sensitive to social consequences over time.

Psychiatrists like Dr. Adriana Stacey have pointed to this phenomenon for years. Stacey, who works primarily with teenagers and college students, previously told CNN using social media releases a “dopamine dump” in the brain.

“When we do things that are addictive like use cocaine or use smartphones, our brains release a lot of dopamine at once. It tells our brains to keep using that,” she said. “For teenagers in particular, this part of their brain is actually hyperactive compared to adults. They can’t get motivated to do anything else.”

Recent studies demonstrate other ways excessive screen time can impact brain development. In young children, for example, excessive screen time was significantly associated with poorer emerging literacy skills and ability to use expressive language.

Democratic Sen. Chris Murphy, who recently published an op-ed in the Bulwark about loneliness and mental health, echoed the surgeon general’s concerns about social media. “We have lost something as a society, as so much of our life has turned into screen-to-screen communication, it just doesn’t give you the same sense of value and the same sense of satisfaction as talking to somebody or seeing someone,” Murphy told CNN in an interview alongside Murthy.

For both Murphy and Murthy, the issue of social media addiction is personal. Both men are fathers – Murphy to teenagers and Murthy to young children. “It’s not coincidental that Dr. Murthy and I are probably talking more about this issue of loneliness more than others in public life,” Murphy told CNN. “I look at this through the prism of my 14-year-old and my 11-year-old.”

As a country, Murphy explained, the U.S. is not powerless in the face of Big Tech. Lawmakers could make different decisions about limiting young kids from social media and incentivizing companies to make algorithms less addictive.

The surgeon general similarly addressed addictive algorithms, explaining pitting adolescents against Big Tech is “just not a fair fight.” He told CNN, “You have some of the best designers and product developers in the world who have designed these products to make sure people are maximizing the amount of time they spend on these platforms. And if we tell a child, use the force of your willpower to control how much time you’re spending, you’re pitting a child against the world’s greatest product designers.”

Despite the hurdles facing parents and kids, Murphy struck a note of optimism about the future of social media.

“None of this is out of our control. When we had dangerous vehicles on the road, we passed laws to make those vehicles less dangerous,” he told CNN. “We should make decisions to make [social media] a healthier experience that would make kids feel better about themselves and less alone.”

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Technology

In Japan, pet fish playing Nintendo Switch run up bill on owner’s credit card

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CNN
 — 

Here’s something you don’t see everyday. Pet fish playing a video game in Japan managed to log on to the Nintendo Switch store, change their owner’s avatar, set up a Pay Pal account and rack up a credit card bill.

And it was all seemingly livestreamed, in real time, on the internet.

The fish in question belong to a YouTuber known as Mutekimaru, whose channel is popular with the gaming community for its videos featuring groups of tetra fish that “play” video games.

Mutekimaru had previously installed sophisticated motion detection tracking software in fish tanks, enabling the fish to remotely control a Nintendo Switch console.

But the technology, and the fishes’ apparent mastery of it, led to an unexpected turn of events earlier this month while Mutekimaru was live-streaming a game of Pokémon.

Mutekimaru had stepped away for a break when the game crashed due to a system error and the console returned to the home screen.

But the fish carried on swimming, like fish tend to do, and seemingly continued to control the console remotely from their tank.

During the next seven hours, the fish reportedly managed to change the name of their owner’s Switch account before twice logging into the Nintendo store, where users can purchase games and other downloadable content.

They also managed to “check” legal terms and conditions, downloaded a new avatar and even set up a PayPal account from the Switch – sending an email out to their owner in the process, video from the livestream appeared to show.

But things didn’t end there. The fish were also seen adding 500 yen ($4) to Mutekimaru’s Switch account from his credit card during the livestream – exposing his credit card details in the process, the YouTuber revealed in a follow-up video about the episode.

By this point, thousands of comments were streaming in as viewers watched the unintended takeover being livestreamed on the channel, and the incident went viral on Twitter, where thousands of Japanese users shared their amusement.

Mutekimaru later said that he had contacted Nintendo to explain what happened and asked for a refund of his 500 yen.

Nintendo declined to comment to CNN, citing customer confidentiality.



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Business

Elon Musk meets with House Speaker Kevin McCarthy and Hakeem Jeffries

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CNN
 — 

Twitter and Tesla CEO Elon Musk met with House Speaker Kevin McCarthy and Democratic leader Hakeem Jeffries at the US Capitol in Washington on Thursday evening.

McCarthy, leaving the meeting with Musk in his office, declined to comment other than to say: “He came for my birthday.” The California Republican turned 58 on Thursday.

After the meeting, Musk wrote on Twitter that he met with McCarthy and Jeffries “to discuss ensuring that this platform is fair to both parties.”

The meeting between Musk and congressional leaders comes as the House Oversight Committee is planning to hold a hearing next month focused on Twitter and how it handled a story about Hunter Biden’s laptop. The House GOP conference members have promised rigorous oversight into big tech and social media platforms, which they have accused of conservative censorship.

The panel invited three former Twitter employees to testify, and is in active discussions with the trio about appearing in front of the committee, according to multiple sources familiar with the matter. The committee is looking at February 8 as a potential target date for the hearing, the sources said.

The manner in which Twitter handled the Hunter Biden laptop story has been the subject of several so-called Twitter Files reports, corporate communications that have been disseminated to journalists hand-picked by Musk and his team at Twitter. The Twitter Files have shown the company’s moderation team agonized over how to handle initial stories about the saga. Although early news reports were blocked or downplayed, the company quickly reversed course and allowed them to be posted and discussed on the platform.

Musk has developed a reputation as a polarizing figure in the tech industry and for his political views. He has frequently weighed in publicly on US policy and the political landscape in recent months. Musk has said that he has voted for Democrats and Republicans in the past but has recently favored conservatives and says he identifies as Republican.

The meeting comes amid a political power shift in Washington after Republicans took control of the House of Representatives in January and elected McCarthy as speaker.

This story and headline have been updated with additional developments.

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Entertainment

Mayor Eric Adams, NYPD addresses backlash over viral video of officers taken after Drake concert at the Apollo Theater in Harlem

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HARLEM, Manhattan (WABC) — Twitter was thrown into a frenzy over the weekend after footage captured the NYPD taking video of people leaving a Drake concert at the Apollo Theater in Harlem, but the department insists it’s not what it looks like.

“It was a large event. Drake back at the Apollo! We want that. We want our police and community involved,” New York City Mayor Eric Adams said.

It was an epic weekend at the Apollo. Drake performed for the first time ever at the historic theater.

After the Sunday night concert, fans walked to about a dozen NYPD officers, in plain sight, shooting video of those leaving the performance.

The five second clip went viral, with 20 million views and counting, and angered users on social media, including Twitter, about NYPD surveillance tactics.

“Well, first we have to be honest with ourselves. Twitter is not real and those little people that goes back and forth all the time talking to themselves,” Adams said.

ALSO READ | Woman pleads guilty to stealing cousin’s $1 million New York State Lottery jackpot

In a statement to Eyewitness News, the NYPD said the officer seen in the blue jacket holding the camera is from the 28th Precinct social media team and that the officer was taking video for an upcoming Twitter post that will highlight local community events. The video will not be utilized for any other reason.

They said the final Drake concert video will look similar to a video created from a December toy drive.

The 28th Precinct has been posting highlights from local events, trying to promote a positive relationship between the community and the NYPD.

“When you have those that are sitting at home in the corner of the room, trying to find a reason to divide NYPD from everyday New Yorkers, then they are going to say that,” Adams said. “Thumbs up to that great captain up in the 28 Precinct. I know that precinct. I know that captain. He’s very community-minded and community-centered and I commend him for doing so.”

But the clip reignited concerns raised last week when Madison Square Garden admitted to using facial recognition to remove litigants with actions against the arena. This prompted state legislators to introduce a new bill Monday, that would ban the use of facial recognition at sporting events.

Still, with the NYPD providing an explanation as to why cameras were filming people leaving the Apollo, a lot of New Yorkers still aren’t buying it. Meaning, the NYPD has a lot more work to do in improving community relations.

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World

Indonesia: Warning issued over ‘dragon’s breath’ viral video trend

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CNN
 — 

Indonesia is warning people against consuming liquid nitrogen after more than 20 children were harmed eating a street snack known as “dragon’s breath” that’s at the center of a dangerous new viral video trend.

The children suffered burns to their skin, severe stomach pains and food poisoning after consuming the colorful candies, according to Indonesia’s Ministry of Health, which is urging parents, teachers and local health authorities to be vigilant.

The candies are dipped in liquid nitrogen to create a vapor effect when eaten. They are popular with children, dozens of whom have uploaded clips to short-form video app TikTok showing them blowing the fumes out of their mouths, noses and ears. One video showing the preparation of the snack by a street vendor has been viewed close to 10 million times.

Around 25 children have been hurt consuming the candies, including two who were hospitalized, said the ministry’s director general Maxi Rein Rondonuwu. No deaths have been reported.

Using liquid nitrogen in food preparation is not illegal. Top chefs often use the vapors to create theatrical effects when serving dishes. It is clear, colorless and odorless, and commonly used in medical settings and as an ingredient to freeze food.

However, when not used properly, it can be hazardous.

”Liquid nitrogen is not only dangerous when consumed, it can cause severe breathing difficulties from nitrogen fumes that are inhaled over a long time,” Maxi said.

The first case was reported in July 2022, according to the ministry, when a child from a village in the Ponorogo Regency in East Java suffered cold burns on his skin after eating the snack.

More cases were reported in November and December, including a 4-year-old boy who was admitted to hospital in the capital Jakarta with severe stomach pain.

“Schools must educate children in the community about the dangers of liquid nitrogen in food (to) prevent more cases of severe food poisoning,” Maxi said.

– Source:
HLN
” data-fave-thumbnails=”{“big”:{“uri”:”https://media.cnn.com/api/v1/images/stellar/prod/180811080208-dragon-breath.jpg?q=x_86,y_251,h_663,w_1179,c_crop/h_540,w_960″},”small”:{“uri”:”https://media.cnn.com/api/v1/images/stellar/prod/180811080208-dragon-breath.jpg?q=x_86,y_251,h_663,w_1179,c_crop/h_540,w_960″}}” data-vr-video=”” data-show-name=”Weekend Express” data-show-url=”https://www.cnn.com/shows/weekend-express” data-check-event-based-preview=”” data-network-id=”” data-details=””>

New liquid nitrogen cereal sparks controversy

In 2018, the US Food and Drug Administration (FDA) issued safety alerts warning that serious injury could result from eating foods like ice cream, cereal or cocktails prepared with liquid nitrogen.

“Injuries have occurred from handling or eating products prepared by adding liquid nitrogen immediately before consumption, even after the liquid nitrogen has fully evaporated due to the extremely low temperature of the food,” the FDA said.

“This is a hazardous chemical compound,” said Clarence Yeo, a Singapore-based doctor. “It irritates the stomach and can cause burns in the mouth and esophagus. Children would be especially sensitive to (its effects) if it is eaten in large amounts.”

Yeo warned he “wouldn’t advise anyone to eat it.”

“You could end up in hospital and the worst case scenario could be organ damage,” he said.

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World

Brovary, Ukraine: Helicopter crash kills 16, including Ukrainian interior minister

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CNN
 — 

A helicopter crash near a kindergarten in the Kyiv region has killed at least 16 people, including the leadership team of Ukraine’s interior ministry who were traveling on the aircraft and three children on the ground, according to officials.

At least 30 others, including 12 children, are in the hospital following the incident in the city of Brovary on Wednesday, according to Kyrylo Tymoshenko, head of the Ukrainian Presidential Administration.

Tymoshenko has revised down the number of people killed in the crash on the outskirts of Ukraine’s capital – the previous death toll was 18.

Interior Minister Denis Monastyrsky, First Deputy Minister Yevheniy Yenin and State Secretary Yuriy Lubkovychis died, Anton Geraschenko, a ministry adviser, confirmed on social media.

All nine people onboard the helicopter (six ministry officials and three crew members) were killed, leaving another seven dead on the ground, including three children, Tymoshenko said. A search and rescue operation is continuing, he added.

The Ukrainian Security Services, the SBU, has launched an investigation into the crash, and posted on Facebook that “several versions of the tragedy are being considered.”

They include: “violation of flight rule, technical malfunction of the helicopter (and) deliberate actions to destroy the helicopter.”

There has been no suggestion from any other Ukrainian officials about Russian involvement in this crash. Ukraine’s President Volodymyr Zelensky has described the incident as a “tragedy.”

A CNN team on the ground in the Kyiv region noted gray skies and very low visibility.

The helicopter that crashed was a Eurocopter EC225 “Super Puma,” the CNN crew confirmed after seeing remnants of flight manuals among the debris.

The State Emergency Services of Ukraine (SES) said that this helicopter “was repeatedly involved in the transportation of personnel to emergency sites.”

An SES statement posted on Facebook added: “The crew of the aircraft was trained to perform tasks in difficult conditions and had the required number of hours of flying time.”

It landed near a kindergarten and a residential building, Oleksiy Kuleba, head of the Kyiv Regional Military Administration, said earlier.

“At the time of the tragedy, there were children and the staff in the kindergarten. At the moment, everyone was evacuated,” he wrote on Telegram.

Paramedics, the police and firefighters are responding at the scene, Kuleba added.

In a written statement, President Zelensky called the crash “a terrible tragedy,” adding that he has ordered the Ukrainian Security Services to “to find out all the circumstances.”

Zelensky ended his statement by saying the interior ministry officials were “true patriots of Ukraine. May they rest in peace! May all those whose lives were taken this black morning rest in peace!”

The officials are thought to be the most senior government figures to have died since Russia invaded Ukraine last February.

Monastyrsky, 42, was a lawyer by training. According to a biography published on the ministry’s website, he spent some years teaching law and management at a university in his home town of Khmelnytskyi, before deciding to turn “from theory to practice” and become involved in politics.

He worked on reforming Ukrainian law enforcement following the 2014 Euromaidan revolution, rose through the ranks and was appointed interior minister in July 2021.

Last year, Monastyrsky accompanied a CNN crew on a visit to abandoned Russian military positions in Chernobyl.

News of Monastyrsky’s death sparked a wave of reactions from many of his counterparts and other foreign leaders.

“Saddened by the tragic death of the Ukrainian Interior Minister Denis Monastyrsky. Thoughts for all the victims of this terrible event that occurred near a kindergarten, for the children and the families,” French President Emmanuel Macron tweeted.

UK Foreign Secretary James Cleverly described Monastyrsky as “a true friend of the UK.”

Charles Michel, president of the European Council, also paid tribute to Monastyrsky as “a great friend of the EU.” Michel tweeted that the European Union joins Ukraine “in grief following the tragic helicopter accident in Brovary.”

Yenin, also 42, served as Ukraine’s deputy prosecutor general and deputy minister of foreign affairs before becoming Monastyrsky’s first deputy in September 2021, according to the ministry’s website.

Lubkovychis was 33 and, like the other two men, was also appointed to the ministry in 2021.

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Business

Elon Musk, Tesla Poised for Trial Over Tweets Proposing to Take Car Maker Private

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Elon Musk

is headed to court in a securities-fraud trial over tweets from 2018 in which he floated the possibility of taking

Tesla Inc.

private, with in-person jury selection poised to begin Tuesday. 

The class-action case originates with an Aug. 7, 2018 tweet in which the Tesla chief executive said, “Am considering taking Tesla private at $420. Funding secured.” 

An investor,

Glen Littleton,

sued Tesla, Mr. Musk and members of Tesla’s board at the time, alleging that Mr. Musk’s tweets were false and cost investors billions by spurring swings in the prices for Tesla stock, options and bonds. In court filings, Mr. Musk has said he was indeed considering taking Tesla private and believed he had the support of Saudi Arabia’s sovereign-wealth fund to do so. The deal, which would have been valued around $72 billion, never materialized.

U.S. District Judge

Edward Chen,

who is overseeing the San Francisco jury trial that is scheduled to run through Feb. 1, has ruled that Mr. Musk’s tweets about taking the company private weren’t true and that he acted recklessly in making them. 

Questions for the jury include whether Mr. Musk’s tweets were material to investors and whether he knew they were untrue.

The case is unusual in that securities-fraud cases usually resolve before going to trial, such as through a settlement, said

Jill Fisch,

a securities-law professor at the University of Pennsylvania. The defendants in this case face “an uphill battle” in light of the judge’s pretrial decision about the veracity of Mr. Musk’s statements, she said.

Attorneys for the lead plaintiff didn’t respond to a request for comment, nor did an attorney for Tesla, Mr. Musk and the other board members.

Twitter has been in turmoil since Elon Musk took over. To get a sense of what’s going on behind the scenes, The Wall Street Journal spoke with former Tesla and SpaceX employees to better understand how Musk leads companies. Illustration: Ryan Trefes

Mr. Musk is expected to take the stand as early as Wednesday, some two months after he did so in Delaware in a trial over his pay package at Tesla. In 2021, he also appeared before Delaware’s business-law court to defend Tesla’s roughly $2.1 billion 2016 takeover of home-solar company SolarCity Corp. 

Also on the list of possible witnesses are Tesla board chair

Robyn Denholm,

board members

Ira Ehrenpreis,

James Murdoch

and

Kimbal Musk

—the CEO’s brother. The head of investor relations,

Martin Viecha,

also may be called.

SHARE YOUR THOUGHTS

What do you think will be the outcome of the case over Elon Musk’s 2018 Tesla tweet? Join the conversation below.

This week’s trial comes at a busy time for Mr. Musk, who has been scrambling to turn around Twitter Inc. after buying the social-media company last fall in a deal valued at $44 billion. His rocket company SpaceX is pushing for the first orbital launch of a new rocket Mr. Musk wants to use for deep-space missions. 

Tesla, meanwhile, has slashed prices across its vehicle lineup, with some of last week’s cuts in the U.S. nearing 20%, in a bid to juice demand. The company’s stock has fallen roughly 70% since its peak in November 2021, erasing around $850 billion in market value. Mr. Musk’s personal wealth has fallen more than $200 billion in that time, according to the Bloomberg Billionaires Index.

Court proceedings involving Mr. Musk can be feisty. In the SolarCity case, for example, Mr. Musk called opposing counsel a “bad human being.”

Tesla has reduced prices across its vehicle lineup in an effort to boost demand.



Photo:

Jay Janner/USA TODAY NETWORK/Reuters

In advance of this week’s trial, Mr. Musk asked the court to move the trial to Texas on the basis that potential jurors in San Francisco could be biased against him. Judge Chen rejected the request. 

“It isn’t that hard it seems to me to find 15 people,” he said.  

The court requires nine jurors and six alternates to proceed with the case. Roughly 190 potential jurors were asked to fill out questionnaires about their views of Mr. Musk and other issues. The court plans to bring in about 50 of them for further questioning Tuesday. 

Opening arguments could start as early as Tuesday after the jury is selected.

The lead plaintiff is seeking damages for investor losses he alleges stemmed from Mr. Musk’s and Tesla’s statements. Tesla stock closed up 11% the day Mr. Musk initially tweeted about potentially taking Tesla private, later giving back all those gains and falling further as questions emerged about the deal. 

The defendants have said the plaintiff won’t be able to prove to a jury that the statements were materially false. Mr. Musk was considering taking Tesla private, the defendants have said, even if some of his assertions about the deal may not have been literally accurate.

Defendants, in a trial brief, said Mr. Musk believed he had secured backing to take the car maker private from Saudi Arabia’s sovereign-wealth fund, the Public Investment Fund. A lawyer for the defendants said Friday that his team had chosen not to enforce subpoenas calling on fund representatives to testify. The sovereign-wealth fund didn’t respond to a request for comment.

Mr. Musk and Tesla each agreed in 2018 to pay $20 million to settle civil charges brought by the Securities and Exchange Commission over the same tweets. Mr. Musk also agreed to step down as chairman of the company, while remaining CEO. He later said in legal filings that he felt pressured to settle with the SEC. Last year, a federal judge denied Mr. Musk’s request to scrap his settlement.

Write to Rebecca Elliott at rebecca.elliott@wsj.com and Meghan Bobrowsky at meghan.bobrowsky@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



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