'Nuclear attack': Investors sue Musk over 'misleading' tweet on making Tesla private

The Tesla logo is seen outside of their showroom in Washington DC.					Saul Loeb AFP  Getty Images

The lawsuits were filed three days after Musk stunned investors by announcing on Twitter that he might take Tesla private in a record $72 billion (roughly Rs. 4.97 lakh crores) transaction that valued the company at $420 (around Rs. 29,000) per share, and that "funding" had been "secured".

Tesla did not respond to a request for comment.

"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".

The US Securities and Exchange Commission is understood to have already opened an inquiry into Mr Musk's tweets. Interestingly, Elon Musk has openly criticised the short-sellers through his tweets.

The proposed class period in Isaacs' lawsuit runs from the afternoon of Aug. 7 through the next day, and in Chamberlain's lawsuit runs from Aug. 7 to Aug. 10. He is known for making sarcastic tweets in the past, such as "Stormy weather in Shortville", after reports of Tesla stocks going up.

A second source close to the situation also said PIF was not taking part in any such plan at this stage.

China Customs: China crude imports rise, but capped by weak ‘teapot’ demand
The US levied 25pc duties on $34bn in Chinese goods on July 6, prompting swift in-kind retaliation from Beijing . Meanwhile, American movie attendance is at a 22-year low, but film fans still spent $11.1 billion last year.

Mourinho makes 'head coach' jibe after transfer frustration
United were interested in signing Raphael Varane of Real Madrid and were looking to splash over £100m for the World Cup victor . His contribution was unbelievable ". "Every team is a good team, forget the name, forget the history, forget the shirt".

Marcelo contacts Juventus to make reunion with Ronaldo reality
City will make late checks on Aymeric Laporte and Benjamin Mendy after they picked up knocks during the Community Shield win over Chelsea last weekend but both players are expected to be passed fit.

Tesla shares were trading at $350.69, down about $6 from where they were before Musk's tweet on Tuesday sent them soaring to a near one-year high.

The two separate cases have been filed in a court in the Northern District of California, which is not far from where Tesla is located, Palo Alto.

Tesla has yet to make a public statement on the matter.

Musk also said, with characteristic Kanye West arrogance, that the Tesla stock is "the most shorted stock in the history of the stock market" and that, as it is publicly traded, "there are large numbers of people who have the incentive to attack the company".

Some analysts have suggested that Musk could convince Tesla's top shareholders, such as Fidelity Investments and China's Tencent, to roll their equity stakes into the deal, thereby significantly reducing the amount of money needed to be raised.

Related news:

Hot News

isis-killer-beheading-video-story-top NCAA adopts college basketball reforms for draft, recruiting
Aug 11, 2018 - 22:00
Listen in to have DG explain why these new measure aren't a panacea, but a logical step in the right direction for college hoops. The agents can cover minimal costs, such as meals and travel expenses related to gauging interest in professional opportunities.

isis-killer-beheading-video-story-top Hurricane Hector to skirt south of Hawaii as it weakens
Aug 11, 2018 - 21:43
Swells generated by Hector will bring large and risky surf to portions of the main Hawaiian islands through tonight. Hector's strongest winds are confined to about 40 miles from the eye and are not expected to affect the island.

isis-killer-beheading-video-story-top Brad Pitt says he has given Angelina Jolie millions since split
Aug 11, 2018 - 20:54
He is going to use everything he can against her in court to insure that he gets as much custody of the kids as possible. Custody issues have proved to be the biggest stumbling block in legally ending the Jolie-Pitt marriage.

isis-killer-beheading-video-story-top Schalke in talks with Tottenham over Danny Rose loan signing
Aug 11, 2018 - 20:11
In addition, with Ben Davies putting in a string of strong performances , he has struggled for playing time at White Hart Lane. Despite this, a further report claims Rose is holding out for a move to Paris Saint-Germain.

isis-killer-beheading-video-story-top SEC Postpones Decision on Vaneck Solidx Bitcoin ETF but Previous Concerns 'Resolved'
Aug 11, 2018 - 19:20
Bitcoin dropped 5.7 percent to $6,484 as of 12:01 p.m.in NY , after earlier falling as much as 7 percent. Of course, the SEC may delay a final thumbs up or down by an additional 240 days if deemed necessary.

isis-killer-beheading-video-story-top State of emergency in Charlottesville for anniversary of 'Unite the Right' rally
Aug 11, 2018 - 19:02
The man accused in that attack, James Alex Fields of OH , has been charged with first-degree murder. Since last year's rally, city officials have ween working on a public safety plan.

isis-killer-beheading-video-story-top 'Deflategate' sequel during preseason? Nope, NFL says just a defective ball
Aug 11, 2018 - 19:02
According to Howard Eskin, the Steelers are being investigated by the NFL for deflated footballs in Thursday's preseason opener in Philadelphia .

isis-killer-beheading-video-story-top David Moyes has made a very bold prediction for Manchester United's season
Aug 11, 2018 - 17:55
The manager pointed to those players who, alongside Pogba , had little training due to post-World Cup breaks. So that's why at times he looks for players in their late 20s, early 30s, because he wants to win.

isis-killer-beheading-video-story-top Man City midfielder set for deadline day Wolves move
Aug 11, 2018 - 17:47
If they are to avoid the drop in their first season back in the Premier League, his experience could be crucial. Wolves have until 5pm to get the deal over the line, and will be hoping Leicester make the defender available.

isis-killer-beheading-video-story-top USA tariff hike on Turkey fails to make economic sense
Aug 11, 2018 - 16:10
With new Iran sanctions coming up, more Turkish banks could face us probing if they are doing business with the Islamic republic. Erdogan on Friday once again urged Turks to exchange gold and dollars into lira to stop the currency from plunging.

isis-killer-beheading-video-story-top America to beam up $8bn for Space Force
Aug 11, 2018 - 15:05
The vice president mentioned four major, fundamental steps that the USA government will take to create a Space Force . It is eventually up to politicians to vote to authorise the new branch of the military.

isis-killer-beheading-video-story-top IKEA opens first India store in Hyderabad
Aug 11, 2018 - 14:30
The company has said that it is prepared to spend about 10 billion rupees ($145 million) on each store it opens in the country. The store will contain approximately 7,500 products and of this almost 1,000 items will be sold for less than Rs. 200.

isis-killer-beheading-video-story-top Omarosa Says the N-Word Apprentice Tape Is Real in New Book
Aug 11, 2018 - 14:24
The former contestant on Trump's reality show, NBC's " The Apprentice ", asserts in her tome that Trump later told her he did not know the chief of staff had asked her to leave her post .

isis-killer-beheading-video-story-top Zimbabwe's Chamisa challenges election result; inauguration halted
Aug 11, 2018 - 11:55
The MDC reported that its foreign lawyers had initially been denied entry into the Constitutional Court on work permit grounds. Chamisa has claimed he won 56 percent of votes and called the election "fraudulent, illegal and illegitimate".

isis-killer-beheading-video-story-top Last Solar Eclipse of 2018 to Occur today
Aug 11, 2018 - 11:54
A total solar eclipse - like the one that took place on August 21, 2017 - occurs when the disk of the moon blocks 100% of the sun. Just over a year ago, millions across North America were anxiously awaiting the " Great American Solar Eclipse " of August 21.