Posted on 08/14/2018 8:51:24 PM PDT by logi_cal869
Full title: Pressure mounts on Tesla as it gets hit with a third securities fraud lawsuit in wake of Elon Musk's 'funding secured' tweet
Tesla is facing another lawsuit accusing CEO Elon Musk of manipulating the company's stock price. The suit follows two lawsuits filed against the company last week by investors alleging securities fraud.
A complaint filed on Monday in US District Court in California alleges that some investors purchased Tesla stock "at artificially inflated prices and suffered significant losses and damages once the truth emerged" that Musk had not secured the funding necessary to convert Tesla into a private company for $420 per share, as he said on August 7.
"Am considering taking Tesla private at $420. Funding secured," Musk said via Twitter.
"Investor support is confirmed. Only reason why this is not certain is that it's contingent on a shareholder vote," he later said.
Tesla's share price surged after Musk's first tweet, rising by as much as 12%, to over $381, before settling at $379.57 when trading closed on August 7. But by the end of trading on August 9, it had fallen to $352.45 as reports emerged that the Securities and Exchange Commission made an inquiry into Tesla about whether one of Musk's tweets regarding the possibility of taking the company private was truthful.
According to the lawsuit, "Musk's tweets were an ill-conceived attempt to manipulate the stock price of Tesla upward in order to burn investors who had sold Tesla stock short," and, "had the desired effect of creating a massive one-day increase in the price of Tesla stock and causing short sellers large losses."
(Excerpt) Read more at businessinsider.com ...
Yes, my sister and her husband made a pilgrimage to the Tesla plant last year, to celebrate their new Tesla 3. Good thing, it might go the way of Solyndra (down the road) soon.
This poster thinks that SpaceX offering to launch a military satellite for $130 million on the world’s most powerful operational rocket is more expensive than flying it for twice as much on the less powerful former record holder, the Delta IV Heavy. So maybe don’t take his word that everything Musk is doing is a “scam.”
http://www.freerepublic.com/focus/f-chat/3665193/posts?page=4#4
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