Aug 10, 2018 - Energy & Climate

Tesla shareholders accuse Elon Musk of securities fraud in lawsuit

Michael Sykes

Tesla shareholders have proposed filing a class-action lawsuit against the company and CEO Elon Musk accusing him of securities fraud, reports Reuters.

The big picture: Shareholders are say Musk's tweet claiming he would take Tesla private was an attempt to manipulate Tesla's stock price and ruin plans for short-sellers.

The details: The lawsuit was filed by Keller Lenkner, LLC. on behalf of Tesla's shareholders. The lawsuit focuses on a statement Musk made on Twitter saying funding for the deal to privatize the company had been "secured," but claims that statement was false.

Tesla's stock rose to $387.46 in reaction to the tweet — a full $45.57 over the previous day's closing price.

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Tesla shareholders accuse Elon Musk of securities fraud in lawsuit

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