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Offbeat Elon Musk's tweet draws Tesla investor lawsuit over share price swings

03:55  11 august  2018
03:55  11 august  2018 Source:   bloomberg.com

Elon Musk trolls billionaire betting against Tesla: 'Will send Einhorn a box of short shorts'

  Elon Musk trolls billionaire betting against Tesla: 'Will send Einhorn a box of short shorts' Billionaire David Einhorn's hedge fund Greenlight Capital reported Tuesday that the firm's bet against Tesla shares "was our second biggest loser" in the most recent quarter.Tesla CEO Elon Musk seized the opportunity on Twitter, retorting that he would send Einhorn "a box of short shorts to comfort him through this difficult time.

Elon Musk and Tesla Inc. were sued for manipulating share prices with the chief executive officer’ s bombshell tweet that he was thinking about taking the company private and that funding was secure.

An investor is suing Tesla and its founder over wild share price swings following Elon Musk ' s tweet claiming he was considering taking the company private. The complaint alleges violations of American securities law and was filed on Friday as a class action in federal court in San Francisco.

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Elon Musk and Tesla Inc. were sued for manipulating share prices with the chief executive officer’s bombshell tweet that he was thinking about taking the company private and that funding was secure.

Musk lied about funding so he could push shares higher and ambush short sellers betting against the company, according to the shareholder complaint, which was filed Friday as a securities-fraud class action in federal court in San Francisco.

SEC has reportedly made inquiries to Tesla over Musk's tweet about possibly taking company private

  SEC has reportedly made inquiries to Tesla over Musk's tweet about possibly taking company private The U.S. Securities and Exchange Commission has made inquiries to Tesla over CEO Elon Musk's tweets about taking the company private, reported Dow Jones on Wednesday, citing sources.On Tuesday, Musk said on Twitter that he was considering taking Tesla private at $420 a share, and that he had already secured the funding.

Elon Musk is in the news again over some tweets on Twitter about openly expressing the idea of transitioning Tesla Motors into a private company, prospectively starting stock share prices at 0 per share . Musk ’ s tweets also caused Tesla ’s share prices to surge before trading stopped.

Tesla suspends share -trading after Elon Musk tweets he wants to take the carmaker private. Musk said he had secured funding to take the company private at 0 a share , far above its pre- tweet price of 5, in a deal that could value the company at more than billion.

Musk set off a firestorm with the 53-character post Aug. 7 on Twitter: “Am considering taking Tesla private at $420. 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 Musk’s declaration that funding was already in place. Neither he nor anyone else has supplied evidence that it was.

Can Elon Musk Tweet That? The SEC May Have an Opinion: QuickTake

“Musk’s statement that he had secured funding was especially material and significantly moved the market,” shareholder Kalman Isaacs said in the complaint. “Because Musk has not secured financing, and has issued false and materially misleading information into the market, short sellers of Tesla stock were forced to cover their positions by purchasing shares at artificially inflated prices after 12:48pm on August 7, 2018. Obviously, all purchasers of Tesla securities were injured as well.”

Saudi Fund in Talks to Invest in Tesla Buyout Deal

  Saudi Fund in Talks to Invest in Tesla Buyout Deal Saudi Arabia’s sovereign wealth fund is in talks that could see it becoming a significant investor in Tesla as part of Elon Musk’s plan to take the electric car maker private, according to a person with direct knowledge of the fund’s plans. The Public Investment Fund, which has built up a stake just shy of 5 percent in Tesla in recent months, is exploring how it can be involved in the potential deal, the person said on condition of anonymity. Discussions began before the controversial Aug. 7 tweet by Musk, who is Tesla’s co-founder and chief executive officer, saying he was weighing a plan to take the company private.

Elon Musk grumbles at short-sellers, but is private ownership right for Tesla ? | Nils Pratley. Read more. “If no firmer details emerge investors would likely increasingly debate Musk ’ s credibility and seemingly unhealthy focus on the shares ’ price and volatility, ” wrote Bernstein analyst Toni

Chief Executive Elon Musk said on Tuesday he is considering taking Tesla Inc private in what would Such a move - over which no final decision had been made - would let Tesla “operate at its best A price of 0 per share would represent a nearly 23 percent premium to Tesla ’ s closing price on

Tesla declined to comment on the suit. Musk is Tesla’s largest shareholder, with a 20 percent stake in the company.

The U.S. Securities and Exchange Commission is examining whether Musk’s “funding secured” tweet was meant to be factual, intensifying its scrutiny of Tesla’s public statements after the announcement, according to people familiar with the matter.

SEC enforcement attorneys in the San Francisco office were already gathering general information about Tesla’s public pronouncements on manufacturing goals and sales targets, according to the people who asked not to be named because the review is private.

Other investors have begun to file lawsuits as well. Eventually, the cases will be consolidated and go before a single judge.

Buying out shareholders at the price Musk quoted -- almost 25 percent above where the stock was trading at the time of his initial tweet -- would make the deal worth $82 billion. After adjusting for inflation, that’s more than the record-setting buyout of RJR Nabisco that closed in 1989.

Musk says Saudi fund pushed for two years to take Tesla private

  Musk says Saudi fund pushed for two years to take Tesla private Saudi Arabia's sovereign wealth fund has been pushing to take electric carmaker Tesla private in talks with Chief Executive Elon Musk dating back nearly two years and also backed the deal last week, Musk said in a blog post on Monday. Musk last week shocked investors with his announcement on Twitter that he was looking to take Tesla private at $420 a share, valuing the company at $72 billion. He provided no details on funding except that it was "secured"."Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private," Musk wrote in a blog post https://www.tesla.

Chief Executive Elon Musk said on Tuesday he is considering taking Tesla Inc private in what would Such a move - over which no final decision had been made - would let Tesla “operate at its best A price of 0 per share would represent a nearly 23 percent premium to Tesla ’ s closing price on

Tesla boss Elon Musk is considering taking the electric-car firm private, a move he claimed was the "best path forward" for the company. Mr Musk , who owns almost 20% of the company, said he hoped the move would shield the firm from distracting swings in the share price and the pressure to meet

A veteran shareholder lawyer in San Francisco said investors may have a viable claim against Tesla.

"Shareholders could potentially be misled if the statement omits material information,” attorney Joe Tabacco said. “The market reaction shows Musk’s statement by itself was material. Anybody who purchased the stock on that news, if the news was in fact misleading, could have a claim, however, it would be very short class period."

Musk has a history of setting aggressive sales targets that critics have called unrealistic. Speculation had been swirling around Tesla and Musk’s disclosures amid the yearlong struggle the company had ramping up production of the Model 3 sedan, with Musk fielding a question on the company’s latest earnings call about whether a notice from a regulator was keeping him from being able to raise more capital.

Musk had raised the go-private possibility with the board last week, according to a statement from six of Tesla’s nine directors. They said he had “addressed the funding for this to occur,” without providing details.

The case is Isaacs v. Musk, 18-cv-04865, U.S. District Court, Northern District of California (San Francisco).

Tesla Keeps Sliding on Doubts Musk Has the Money to Go Private .
Tesla Inc. plunged further on Elon Musk’s acknowledgment of the hurdles standing in the way of his effort to take the company private and the emergence of another electric-car company attracting interest from a key investor. The stock tumbled as much as 7.6 percent before the start of regular trading Monday, as JPMorgan scrapped any modeling in its price target for the possibility that Musk will buy out some investors at $420 a share. Analyst Ryan Brinkman, who rates Tesla the equivalent of a sell, said such a deal is “potentially far from even being formally proposed.

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