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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.

tesla
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)

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Would Elon Musk Be Able to Drive Tesla Cars in India?

In 2015, Prime Minister Narendra Modi visited Tesla headquarters at Palo Alto, California and met Musk who gave Modi a tour of the company's electric car plant

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

Tesla CEO Elon Musk has once again vouched to make India his next big market but the question lingers: Will the electric car ever run on desi roads?

Breaking his silence over India after 10 months, Musk tweeted late Friday that he would love to be in India in 2019 or next year.

“Would love to be there this year. If not, definitely next! India,” Musk tweeted to a user.

His tweet came after Musk earlier blamed the Indian government’s restrictive policies for giving up on his India dreams.

Musk also blamed the FDI norms for the delay in the electric car maker’s entry into the Indian market.

Earlier this year, Tesla’s Indian-origin Chief Financial Officer Deepak Ahuja announced his retirement from the firm, thus bringing Musk’s India dream to a halt again.

Electric car problems
Jeff Solie plugs in his electric car Tesla sedan at his home, in New Berlin, Wis., July 13, 2017. Electric cars are seeing growing support around the world. But there’s a problem: There aren’t enough places to plug those cars in. VOA

Musk wanted to drive Tesla in India in 2017 and Ahuja, who worked out of Tesla’s San Carlos headquarters, quit the company in 2015 only to rejoin in 2017.

In May last year, Tesla CEO Elon Musk said he would still love to roll out Tesla electric cars in India but the tough government regulations have forced him to apply the brakes on his plans.

“Would love to be in India. Some challenging government regulations, unfortunately,” Musk tweeted in response to a Twitter user who wrote “No Tesla in India” on his Twitter handle.

Also Read- How to Pay your Credit Card Bill Conveniently

“Deepak Ahuja, our CFO, is from India.Tesla will be there as soon as he believes we should,” added Musk, also the SpaceX founder.

Tesla was expected to enter India with the Model 3 that sells for nearly $35,000.

In 2015, Prime Minister Narendra Modi visited Tesla headquarters at Palo Alto, California and met Musk who gave Modi a tour of the company’s electric car plant. (IANS)