Published: Tue, August 14, 2018
Finance | By Cynthia Curry

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

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

Ratings agency Moody's also said on Thursday that Tesla's consideration of going private based on Musk's letter to shareholders published after his tweets on Tuesday was negative for the company's credit outlook.

Tesla Inc. (TSLA.O) 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 class includes investors who bought Tesla shares as they were rising in the wake of Musk's tweet. Einhorn holds a short position on Tesla shares through his hedge fund but it has cost him heavily this year: Greenlight's fund dropped 18.3 percent in the first half of this year, with Tesla being the second-largest contributor to those losses in the most recent quarter.

No evidence has been presented by either side to prove or disprove that funding had been secured to take the company private. Isaacs is seeking approval to become the lead plaintiff in a class-action lawsuit representing all Tesla shareholders who traded after Musk's tweet on Tuesday or at any time on Wednesday.

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. "All indications are that his statement that funding is secured is false or grossly exaggerated".

The misleading information provided by Elon forced the short sellers of Tesla to buy shares at manipulatively inflated prices.

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The bank also revised reserve requirement ratios for banks, in a move also aimed at staving off any liquidity issues. Even more, Trump's direct reference to the Turkish lira sent the currency tumbling.

Indeed, Tesla continues is burning through cash at an annualized rate of $4 billion as it tries to sort through its myriad of production problems.

July 1, 2018 - Tesla factory workers produce more than 5,000 Model 3 sedans during the last week of June, hitting Musk's goal.

Tesla, under its CEO Elon Musk, is reportedly looking for finding from a wide range of investors so as to prevent a concentration of ownership.

Here are some of the key events in Tesla Inc's turbulent history as a public company.

Short sellers are investors who bet against a company and look for its stock price to go down.

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