Last updated on December 8th, 2022 at 02:52 pm
He claims CEO tweets violate SEC settlement
One of Tesla’s shareholders is suing its CEO, Elon Musk. According to the plaintiff, Musk is violating an agreement with the US Securities and Exchange Commission (SEC) reached in 2018.
Tesla investor sues Musk
According to the lawsuit, which also mentions the company’s board of directors as defendants, Musk’s “messy” tweets and the directors’ failure to enforce the agreement put shareholders at risk of losing billions of dollars.
The complaint highlighted several messages from Musk on Twitter, including the case when the head of Tesla wrote on May 1 last year that the company’s shares were “too expensive . ” This message led to a drop in Tesla’s market value by more than $ 13 billion.
The plaintiff argues that Musk’s actions and the directors’ inaction caused “material financial damage” and that they should reimburse his company.
Note that over the past time the price of Tesla shares has grown almost fivefold, as a result of which the company’s capitalization exceeded $ 600 billion.
