Lawsuits accuse Tesla's Musk of fraud over tweets, going-private proposal

The Tesla logo is seen outside of their showroom in Washington DC.					Saul Loeb AFP  Getty Images

The Tesla logo is seen outside of their showroom in Washington DC. Saul Loeb AFP Getty Images

Musk's August 7 tweets, including when he said there was "funding secured" to possibly take Tesla private, helped push Tesla's stock price more than 13 percent above the prior day's close.

U.S. market regulators are reportedly stepping up their scrutiny of Musk's claim and have asked Tesla if the CEO's remarks were genuine.

In one of the lawsuits, the plaintiff Kalman Isaacs said Musk's tweets were false and misleading, and together with Tesla's failure to correct them amounted to a "nuclear attack" created to "completely decimate" short-sellers.

Tesla and the Securities and Exchange Commision declined comment on Thursday.

Whether or not that will result in civil and criminal penalties for Musk remains to be seen as some reports suggest that the tweet sent out by Musk have left him vulnerable to such charges.

Two new lawsuits accuse Tesla and its CEO Elon Musk of violating federal securities law by allegedly making false statements to boost the company's stock price.

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. There is even the suggestion that Musk's tweets about taking Tesla private were in response to the bets.

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Initial data indicated that more than 400 people received medical care at the square and two gendarmes were attacked, it said. Police fired tear gas and water cannons to disperse demonstrators on Friday, saying they acted to protect public safety.

"Musk's tweets helped push Tesla's stock price more than 13 percent above the previous day's close". They said he had "addressed the funding for this to occur", without providing details.

Wall Street is awash with speculation on who might team up with Musk to do a deal. The agency would also look at the veracity of the statement Tesla later posted on its website and whether the company should have made additional statements based on what it knew.

"We wonder whether surge production techniques to support self-congratulatory tweets are economically efficient ways of ramping production, or whether customers will be happy with the quality of a auto rush through production to prove a point to short sellers", the letter said.

The agency would be able to answer those questions relatively quickly, but its second potential area of inquiry - Musk's intent with his tweets - would be more challenging, Pitt said.

Perhaps that's what was missing when Elon Musk and Masayoshi Son met past year.

Musk could soon be under investigation by the SEC if he can't prove there actually is a reasonable $420 offer on the table.

Whether or not Musk's actions lead to an SEC investigation, his conduct this week has been highly unusual, putting Tesla and its shareholders in an increasingly hard position.

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