Elon Musk faces legal action over 1 little tweet (and a big share price jump)
With just nine words, the Tesla founder has landed himself in legal trouble.
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The tweet saw Tesla share prices jump (climbing $20 above their opening price within a matter of hours), leaving investors who had "shorted" the stock -- or put money on Tesla's stock price dropping -- questioning whether Musk could back up such market-sensitive claims.
"Musk's statement that he had secured funding was especially material and significantly moved the market," one shareholder, Kalman Isaacs, wrote in his complaint, according to Bloomberg.
Isaacs claims Musk "has not secured financing" and that his tweet "issued false and materially misleading information into the market." As a result, Isaacs claimed, purchasers of Tesla stock were "injured."
The question of privatisation is still carrying on in financial circles, but for those outside the Wall Street bubble the episode is a timely reminder: When you're as big as Musk, Twitter can be an expensive habit.
Tesla declined to comment to both Bloomberg and CNET.
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