Investor sues Tesla over Musk’s tweet on stock sale poll
Tesla was hit by a lawsuit over CEO Elon Musk’s social media posts including his Twitter poll on stock sales that pulled down its stock prices. Tesla investor David Wagner called for access to internal documents to investigate whether Tesla and Musk violated an agreement with the US securities regulator and its board members failed to adhere to their fiduciary duties.
In 2018, Musk settled a lawsuit by the Securities and Exchange Commission over his tweet on taking the company private, agreeing to have the company’s lawyers pre-approve tweets with material information about the company.
The company’s share prices that were at record-high levels decreased after Musk announced that he would sell about 10 per cent of his stake if Twitter users voted yes. Since then, with indefinite gaps, the Tesla CEO has sold shares worth $14 billion so far.
