Palo Alto’s Tesla faces investor lawsuit over Musk tweet on 10% stock sale


Palo Alto’s Tesla faces investor lawsuit over Musk tweet on 10% stock sale

Tesla Inc., the Palo Alto, California-headquartered poster child of a thriving global e-vehicle industry, had been met with an investor lawsuit over Tesla co-founder and Chief Elon Musk’s Twitter voting poll on his 10 per cent Tesla stake sale, which in effect had whacked away nearly a 25 per cent market cap of the e-vehicle industry trailblazer.

In point of fact, the lawsuit filed by a Tesla investor David Wagner with the Delaware Court of Chancery on Thursday, had sought an access into Tesla Inc’s internal documents in a bid to probe on whether Tesla Inc along with Musk had breached any accord with the US SEC (Securities and Exchange Commission) regulators.

Aside from that, the lawsuit also had called on a probe on whether Tesla Inc board members had botched to maintain their legal duties.

Tesla Inc hit by an investor lawsuit on Musk’s 10% stake sale

Nevertheless, Musk had faced off US regulators’ probes at least thrice back in the 2018 and 2019 over his tweets, while he had to step aside as the Company Chair back in the 2018s as part of a settlement of a lawsuit with the US SEC about his tweets on taking the company private.

However, latest investor lawsuit came forth nearly a month after Musk had asked in a Twitter voting poll on November 6 on whether he should sell off a 10 per cent of his Tesla stakes given the scale of a billionaires’ tax what the Biden Administration had been planning to impose, while a majority of Musk’s Twitter followers had voted in favour of a sale and Musk had sold off roughly a $14 billion worth of Tesla Inc shares thus far.

Tesla Inc had shrugged off nearly a quarter of its market cap since November 6 as beforementioned.

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