Last week Elon Musk was in the hot seat with two class action lawsuits claiming he violated federal securities law through tweets suggesting a plan to go private.
Am considering taking Tesla private at $420. Funding secured.— Elon Musk (@elonmusk) August 7, 2018
Monday Musk released a blog post saying the Saudi fund approached him several times about taking the company private. He claims July 31, after a meeting, he left assured that a deal with the Saudi sovereign fund would close and it was a matter of getting the ball rolling.
One lawsuit is claiming the tweet about the proposal drove shares of Tesla up $45.47 above the previous day’s closing. The complainant says Musk falsely stated he had secured the necessary funding to take Tesla private.
Another suit from a man named William Chamberlain is also upset. He told courts, Musk “materially misled investors” between August 7 and August 10 on plans to take Tesla private, including falsely claiming investor support for the proposal was confirmed, and that funding was secured.
As on Monday, Musk is still confident that the Saudi fund will be financially backing the endeavor to take Tesla private.Rewards Fuel social media contests