Karla Mejia

Tesla faces investor lawsuit over Musk's tweets on 10% stock sale

Karla Mejia

Karla Mejia

San Francisco (Reuters) - Tesla Inc has been hit with legal action over social media posts by CEO Elon Musk, including his Twitter poll about a stock sale that caused its share price to fall.

Tesla investor David Wagner requested access to internal documents to investigate whether Tesla and Musk violated the agreement with the U.S. Securities and Exchange Administration Authority and board members.

In 2018, Musk settled a request from the Securities and Exchange Commission for private employment of the Company, agreeing that the company's lawyers have pre-approved tweets with important information about the company.

Tesla shares, surrounded by the top story, lost about a quarter of their value after it was announced on Nov. 6 that Musk would sell 10% of his stake if Twitter users agreed. Since then, he sold nearly $14 billion worth of shares.

The prosecution, filed in Delaware Chancery Court, seeks to take documents and books related to his tweets, including documents to determine whether the stock sale tweets were reviewed or pre-approved.

In March, another shareholder asked Musk and his board in March, accusing him of violating the 2018 settlement with SEC and disclosed shareholders with billions of dollars.




Let's Talk

Schedule a complimentary consultation with one of our advisors to learn more about Bay Street and how we can help you achieve your goals for your financial future.

form img