Elon Musk Got 1.4 Million Dollars Richer Because Of A Tweet

CEO and lead designer at SpaceX and co-founder of Tesla speaks at the International Space Station Research

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.

In a tweet, Elon Musk, the Tesla's CEO said that he was considering a private deal for Tesla and he had secured funding for the proposal, without providing details.

Tesla shares were trading at $350.69, down about $6 from where they were before Musk's tweet on Tuesday sent them soaring to a near one-year high.

Short-sellers borrow shares they believe are overpriced, sell them, and then repurchase shares later at what they hope will be a lower price to make a profit. His intention in taking the company private would be to protect Tesla from the distractions of share price volatility and pressure to meet quarterly financial targets, writes the BBC. Tesla has not commented on this report.

Some analysts have suggested that Mr. Musk may be able to convince Tesla's top shareholders, such as Fidelity Investments and China's Tencent, to roll their equity stakes into the deal, thereby significantly reducing the amount of money needed to be raised.

More news: Tesla CEO Musk says Saudi fund wants to take company private

Musk, often the center of controversy, did not prove he had the funds to finance the operation - despite tweeting "funding secured".

The complaints allege Musk looked to mislead investors by claiming on Twitter that he secured funding to take Tesla private. The names of the two who have filed these cases in a court in California are Kalman Issacs and William Chamberlain. The remark set off a frenzy of trading in Tesla shares, even as investors were struggling to discern whether the tweet was legitimate and what precisely it meant.

July 1, 2018 - Tesla factory workers produce more than 5,000 Model 3 sedans during the last week of June, hitting Musk's goal.

A veteran shareholder lawyer in San Francisco said investors may have a viable claim against Tesla. "The market reaction shows Musk's statement by itself was material".

The Wall Street regulator is reported to have asked Tesla why plans to go private were disclosed on the social media platform rather than in an official filing.

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