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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.

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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)

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Elon Musk Mocks Bezos’ Moon, Space Colony Plans

Earlier in May, Bezos unveiled a new Moon-lander called “Blue Moon” after three years of development

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Elon Musk, CEO of SpaceX. Wikimedia

SpaceX founder Elon Musk has mocked Blue Origin founder Jeff Bezos’ moon plans saying they make no sense.

Amazon CEO Bezos had described his vision of humans living on miles-long, orbiting space stations called “O’Neill colonies”, named after physicist Gerard O’Neill, who first floated the concept.

“Makes no sense. In order to grow the colony, you’d have to transport vast amounts of mass from planets/moons/asteroids. Would be like trying to build the US in the middle of the Atlantic Ocean,” Musk, who is also the CEO of Tesla, tweeted.

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AI could be first ‘resident’ of Mars, hints Musk. (Wikimedia Commons)

The remark comes after Bezos attended a conference in Washington where he discussed his ambitious roadmap for Blue Origin to create a “sustained human presence” – housing up to a trillion people – on the Moon, the report added.

Also Read- Google Now Lets Users Order Food via Search, Maps, Assistant

Earlier in May, Bezos unveiled a new Moon-lander called “Blue Moon” after three years of development, along with a smaller rover at the Walter E. Washington Convention Centre.

“We must return to the Moon – this time to stay. We’re ready to support @NASA in getting there by 2024 with #bluemoon,” Blue Origin had tweeted. (IANS)