Tesla tweet re­sults in le­gal stoush

Wheels (Australia) - - Redline -

Tesla and its CEO, Elon Musk, are be­ing sued by in­vestors who ac­cuse them of in­vent­ing a scheme to “com­pletely dec­i­mate” the com­pany’s many short sell­ers: in­vestors who are bet­ting on a de­cline in Tesla share prices. On 8th Au­gust, Musk tweeted that he was con­sid­er­ing tak­ing Tesla pri­vate at $420 per share and that fund­ing had been se­cured. Shares ral­lied on this news, yet no fund­ing plan has been re­vealed. It’s against SEC rules for a com­pany to is­sue a ma­te­ri­ally false state­ment that mis­leads in­vestors.

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