Inside the White House with D.C.'s most wired reporter. Sign up for Mike Allen's Axios AM.


Tesla shareholders accuse Elon Musk of securities fraud in lawsuit

Elon Musk
Elon Musk. Photo: Joshua Lott/Getty Images

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.