In­vestor sues Elon Musk

Cape Times - - INTERNATIONAL -

TESLA and Elon Musk were sued by an in­vestor over wild share price swings fol­low­ing the chief ex­ec­u­tive of­fi­cer’s August 7 tweet say­ing he was con­sid­er­ing tak­ing the com­pany pri­vate. The complaint al­leges vi­o­la­tions of US se­cu­ri­ties law and was filed Fri­day as a class ac­tion in fed­eral court in San Fran­cisco. Musk set off a firestorm with the 53-char­ac­ter post on Twit­ter: “Am con­sid­er­ing tak­ing Tesla pri­vate at $420 (R5 892). Fund­ing Se­cured.” The stock ini­tially shot up 11 per­cent to al­most $380. Then it fell back, los­ing about 7 per­cent over two days, as doubts mounted about the fea­si­bil­ity of the go­ing-pri­vate idea – and about the chief ex­ec­u­tive of­fi­cer’s dec­la­ra­tion that fund­ing was al­ready in place. He hasn’t sup­plied ev­i­dence that it was; nor has any­one else.

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