Elon Musk Got 1.4 Million Dollars Richer Because Of A Tweet

Daniel Fowler
August 13, 2018

Musk has not offered evidence that he has lined up the necessary funding to take Tesla private, and the complaint did not offer proof to the contrary. "Funding Secured." The stock initially shot up 11 per cent to nearly US$380.

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.

The proposed class-action complaint filed by Kalman Isaacs in San Francisco federal court accused Tesla and Musk of trying to artificially manipulate the company's stock price.

Isaacs accused Musk of making false and misleading statements to inflate Tesla's stock price, and that Tesla "doubled-down" on those statements by failing to correct them.

The Public Investment Fund sees its investment in Tesla as a strategic way for the world's biggest crude producer to hedge against oil, the person said.

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 transaction that valued the company at $420 per share, and that "funding" had been "secured".

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But he added that the conduct of Tesla and its chief executive Mr Musk had caused volatility and cost short-sellers hundreds of millions of dollars.

A Tesla sales and service center is shown in Costa Mesa, California, U.S. June 28, 2018.

If his motive for the tweet "was frustration with short sellers, then that could be a case of market manipulation", John Coffee Jr., a Columbia University law professor and corporate-governance expert, said earlier this week.

Dusaniwsky said that, as of Thursday morning, Tesla remained the single most heavily shorted USA equity with roughly $12.36 billion in total short interest.

"Short shorts coming soon to Tesla merch", Musk tweeted.

Musk has also said he would be looking to keep his ownership of Tesla at around 20 percent in a buyout deal, and that a special objective vehicle, like the one that exists at his aerospace company SpaceX, would allow Tesla shareholders to remain invested if they so choose.

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