Tesla shareholders have filed a class-action lawsuit. It is directed against Elon Musk, the company’s founder and CEO. According to Bloomberg, the plaintiffs allege that Musk artificially inflated the company’s stock price with his statement on Twitter. There, he said he wanted Tesla to become a private company.
Musk’s actions caused significant market volatility. It turns out that the Tesla CEO had not secured financing for his company and provided the market with false information. As a result, sellers of Tesla stock were forced to cover their positions by buying shares that had been artificially inflated. Ultimately, many buyers of Tesla securities suffered losses.
As a reminder, Elon Musk, the founder of Tesla and SpaceX, announced his intention to take Tesla private by delisting its shares from the stock exchange. Now, the U.S. Securities and Exchange Commission will investigate the veracity of this statement.