The 51-year-old billionaire is on trial in San Francisco after investors alleged a 2018 post lost them millions of dollars after it never materialised and denies wrongdoing.
Earlier during proceedings, Elon claimed he had meetings with a Saudi Arabian sovereign wealth fund who hinted they would support the deal.
On August 7 2018, he tweeted: ‘Am considering taking Tesla private at $420. Funding secured,” which sent the price of the electric supercar maker soaring.
Elon - who now owns and runs the microblogging website he made the assertion - has since confessed they never talked about a figure.
The SpaceX founder stands accused of defrauding investors amid being ordered by the SEC to pay $20 million, resign as chairman and have all his Tesla-related tweets vetted by an independent inquiry.
Elon told the court: "I felt it was important to be responsive to their wishes,” while discussing a letter from Ark Investment CEO Cathie Wood.
He also detailed how he felt discussing the pending buy out on social media as “the right thing” to do because he thought an article in the FT would hinder some investors.
Elon said: “"I thought I was doing the right thing.”
"I was concerned when receiving the Financial Times article that the information had leaked and that some investors would be aware that I was considering taking the company private and this would disadvantage other investors, especially small shareholders.