Elon Musk tweets his way to another lawsuit
Remember when… we mentioned that Elon Musk claimed to have secured funding from a mystery company to take Tesla private? Well, some people are calling BS on his claim – in federal court. And upon the announcement, Tesla’s share price soared because that announcement was good news (for some).
The motive… was to harm short-seller with false information. According to the complaint, Elon Musk tweeted news that was materially false and misleading to get revenge on those short-selling doubters. Short-sellers make money when the shorted company’s stock price goes down, so you can see why Musk has a bit of disdain for those people.
Here’s how Tesla loses… the company could lose if they did not seek or secure funding. Elon Musk must prove that his tweets about the funding were made in good faith – in other words, was he being honest? He can seek to hurt short-sellers (actually, he should always be doing that), but only with claims that are true. But we’ve been saying it for weeks – the Tesla CEO needs to stay far, far away from Twitter.