Andrew Left (individually and on behalf of all others similarly situated) has filed a class action lawsuit against Tesla in regards to the automaker manipulating the share price.
This lawsuit is based on a series of tweets by Elon Musk (CEO of Telsa) that he is considering taking Tesla private at $420 per share causing the stock price to increase. These Tweets forced some short sellers to cover their positions.
“Following these tweets, Tesla’s stock price surged, reaching an intraday high of $387.46 per share, before closing at $379.57 per share August 7, 2018, a nearly 11 percent jump from the previous closing price. Trading volume spiked to 30 million shares (compared to an average of 8 million), representing over $11 billion of purchases in the open market. In response to the tweets, many Tesla short-sellers were forced to cover their positions at artificially high prices, losing approximately $1.3 billion in a single day,” according to media reports.
Below is a picture of the Tweet in question:
A complete copy of the Tesla Stock Manipulation Class Action Lawsuit can be found here.
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