Tesla has sued investor Elon Musk over a 10 percent stake sale tweets


Tesla CEO Elon Musk’s social media posts have slashed its share price, including his Twitter poll on stock sales. Tesla investor David Wagner has called for access to internal documents to investigate whether Tesla and Musk violated the agreement with the US securities company and its board members for failing to meet their trust obligations.

In 2018, Musk settled a case with the Securities and Exchange Commission over his tweet about taking the company privately, and the company’s lawyers agreed in advance to approve tweets with information about the company.

Shares of Tesla reached a record high, losing a quarter of their value after Musk announced on November 6 that he would sell 10 percent of his shares, according to Twitter users. Since then he has sold nearly $ 14 billion (approximately Rs. 1,06,800 crore) worth of shares so far.

The lawsuit, filed in Delaware Court of Sanctuary on Thursday, seeks to obtain records and books related to his tweet, including documents identifying whether the stock sale tweets were reviewed or approved in advance.

In March, another shareholder sued Musk and its board, accusing him of violating his 2018 settlement with the SEC and causing billions of dollars in losses to shareholders.

© Thompson Reuters 2021


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