Tesla tweet results in legal stoush
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.