Tesla investors accused Elon Musk of lying

Tesla investors accused Elon Musk of lying

Tesla investor Glen Littleton has sought damages on behalf of shareholders who traded Tesla stock days after Musk released his plan to privatize the company in August 2018.

Reuters writes about it.

“Musk’s lies resulted in ordinary people losing millions of dollars,” Nicholas Porritt, the chief investor lawyer, said at a preliminary hearing in San Francisco.

Musk’s lawyer clarified that he simply used the wrong words when he tweeted about his plans to privatize the automaker in 2018, but that he was serious about taking the company private and ultimately faced opposition from shareholders. .

A 9-member jury will decide whether Musk’s tweets artificially inflated Tesla’s stock price, and if so, by how much. The defendants include current and former Tesla directors.