Lawsuit accuses Tesla’s Musk of fraud over tweets, going-private proposal

Lawsuit accuses Tesla’s Musk of fraud over tweets, going-private proposal

Lawsuit accuses Tesla’s Musk of fraud over tweets, going-private proposal

Tesla is the most shorted company on Wall Street, and Musk has been very vocal about his displeasure with short sellers.

Two investors filed suit against Tesla CEO Elon Musk and the electric vehicle company after he tweeted he wanted to take the firm private, causing the share price to inflate and short-selling investors to lose millions.

Even though Elon Musk has been busy looking for money to fund his $72 billion Tesla buyout, or trying to lobby shareholders to stay as private investors, he didn't forgot about keeping promises he's made to his enemies.

April 3, 2018 - Musk says Tesla will not need to raise more capital in 2018.

In one of the two complaints, Kalman Isaacs, an investor, believes that Elon Musk's statements were false and misleading and that, having failed to correct them, the company executive and the company itself attempted to "decimate totally "short sellers". The lawsuit, first reported by Reuters, appears to be the first one claiming that Musk's Tuesday tweets violated federal securities law.

The PIF didn't immediately respond to requests to comment.

Saudi Arabia's PIF has shown no interest so far in financing Tesla proposed $72 billion deal to take the United States electric vehicle maker private, despite acquiring a minority stake in the company this year, reported Reuters.

Discussions over taking Tesla private have failed before. "Funding secured", Musk said on Tuesday via Twitter before issuing a formal statement on Tesla's website.

The briefs battle royale began after Einhorn's hedge fund said in a letter he was "happy that his Model S lease ended" and was replacing the vehicle because of problems with the technology.

After Musk tweeted on Tuesday that he's considering taking Tesla private, share price surged over 11 percent.

The agency would be able to answer those questions relatively quickly, but its second potential area of inquiry - Musk's intent with his tweets - would be more challenging, Pitt said.

"Short-sellers will go away if he executes on his business plan and will grow in numbers if he doesn't", he said. There is no evidence posted by either Elon or Tesla related to the secured finance.

Musk, who envisions sending tourists to the Moon and slashing travel times between major cities with advanced trains, is respected in Silicon Valley, where he could tap venture capital.

Musk could soon be under investigation by the SEC if he can't prove there actually is a reasonable $420 offer on the table.

Musk is Tesla's largest shareholder, with a 20% stake in the company.

Related news

[an error occurred while processing the directive]