Elon Musk, Tesla face trials over tweets to go privately

Tesla and its Managing Director Elon Musk face a few complaints that make billions violate federal securities laws by tweets suggesting a plan to go privately.

On August 7, Musk published a tweet saying he is considering taking Tesla privately in a proposal that values ​​the company at $ 420 per share. Musk also said that financing for the deal had been secured.

According to a complaint filed in San Francisco by the Federal Prosecutor of Kalman Issacs, Tesla and Musk launched a “system and code of conduct to artificially manipulate the price of the Tesla share to completely uncover the company’s card dealers,” begins with Musk & # 39th 7th Tweet.

The complaint says that the series of tweets about the proposal drove shares in Tesla up $ 45.47 over the previous day’s closing. The trial also claims that Musk erroneously stated that he had secured the necessary funding to take Tesla privately.

In a separate claim for plaintiffs, also filed in federal court In San Francisco, claimant William Chamberlain Musk claims “substantially mislead investors” between August 7th and August 10th if plans to take Tesla privately, including incorrectly claiming investment support for the proposal was confirmed and the funding was secured.

Tesla could not be reached immediately for comments.

Meanwhile, Tesla and Musk could face an investigation from the Securities and Exchange Commission. According to the Wall Street Journal, SEC has talked to Tesla about Musk’s tweet, and why did he make the announcement on Twitter.

This week, Tesla’s board plans to plan to meet with financial advisors to investigate a proposal to take the company privately. CNBC reports that the board is likely to ask Musk to recover.

Follow Brett Molina on Twitter: @ brettmolina23 .

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