Tesla CEO Musk accused in lawsuit of defrauding shareholders
[NEW YORK] Tesla Inc and chief executive Elon Musk were sued on Friday by an investor who said they defrauded shareholders in a scheme to manipulate the electric car company's stock price, starting with Mr Musk's Aug 7 tweet that he might take Tesla private.
In a proposed class-action complaint filed with the federal court in San Francisco, Kalman Isaacs said the scheme was conducted in part to "completely decimate" short-sellers, eventually leading to an inquiry by the US Securities and Exchange Commission.
The class includes investors who bought Tesla shares as they were rising in the wake of Mr Musk's tweet. The share price later fell.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Toyota and Nissan pair up with Tencent and Baidu for China AI arms race
China's largest auto show displays all-electric future, local brands dominate
Toyota hits record annual output, sales on robust demand
Nissan, Mazda roll out new models for China as they aim for comeback
VinFast chief plans to invest US$1 billion more from his fortune in EV maker
XPeng CEO says its software, AI upgrades to enter ‘super fast cycle’