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Tesla Investors Sue Musk, Say His ‘Unchecked’ Tweets Hurting Company

In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private

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Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

A group of institutional investors in Tesla has sued CEO Elon Musk, alleging that his repeated “misstatements on Twitter” continue to harm the company and its shareholders.

According to a report in CNET late Friday, the investors sued the Tesla and SpaceX CEO, saying Musk’s “ongoing unchecked misstatements on Twitter have hurt the electric car maker.

“Musk has continually disregarded all efforts to rein in his material misstatements on social media,” law firm Grant and Eisenhofer Director Michael Barry, representing the investors, said in the statement.

“He has ignored federal court orders, a settlement with the SEC (Securities and Exchange Commission), and even his company’s own corporate policies expressedly requiring that any of his tweets regarding Tesla be pre-screened.

“His conduct has not only cost Tesla shareholders dearly but threatens to expose the company to even greater liability and litigation in the future,” the statement further said.

Tesla was yet to comment on the lawsuit.

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Visitors inspect Tesla electric cars at Brussels Motor Show, Belgium, Jan. 18, 2019. VOA

The US SEC in February asked a US federal judge to hold Musk in contempt for violating a settlement deal reached in 2018.

The development came in response to Musk’s tweet on February 19 that “Tesla made 0 cars in 2011, but will make around 500K in 2019”.

Hours later, the billionaire sent a follow-up tweet indicating that the company will actually deliver just 400,000 cars this year.

Also Read- YouTube Testing a “Fact Check” Alert For Sensitive Searches in India

The US regulators slammed the Tesla CEO because he “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers”.

In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private. (IANS)

Next Story

Tesla CEO Elon Musk Allays Environmental Fears on Tesla’s Plant in Germany

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000

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A Tesla logo is seen in Los Angeles, California. VOA

Tesla CEO Elon Musk has responded to environmental concerns including excessive water use for building the massive ‘Gigafactory 4’ near Berlin to produce electric cars for the European market, saying that such concerns were baseless.

The leading non-profit organization BUND (Friends of the Earth Germany) met Tesla officials last week to discuss possible environmental pollution from the planned Gigafactory.

“Sounds like we need to clear up a few things! Tesla won’t use this much net water on a daily basis. It’s possibly a rare peak usage case, but not an everyday event,” tweeted Musk.

“Also, this is not a natural forest a” it was planted for use as cardboard & only a small part will be used for GF4,” he added.

Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

The site where the Gigafactory will be built has invited protests over concerns that the facility will excessively use water and cause deforestation by destroying 300 hectares of forest.

“Giga Berlin will build sustainable energy vehicles using sustainable energy, so net environmental impact will be extremely positive!” Musk said.

Also Read: OPPO Joins Hands with IIT Hyderabad to Boost AI, 5G Integration

After Shanghai in China, Musk selected Berlin as Tesla’s next gigafactory outside the US where the company is planning to invest 4 billion euros ($4.4 billion) and produce 150,000 cars a year.

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000. (IANS)