Elon Musk taunts investors who short-sold Tesla stocks, despite pending shareholder lawsuit

Einhorn gets box of ‘short shorts’ after sparring with Elon Musk

Einhorn gets box of ‘short shorts’ after sparring with Elon Musk

Two class actions suits have been filed against Elon Musk, the Founder and CEO of electric auto manufacturing company, Tesla Inc and the company itself.

One lawsuit, filed by Tesla investor Kalman Isaacs, said Musk's tweets amounted to a "nuclear attack" on short-sellers, created to "completely decimate" them for not believing in Tesla's stock to date.

The decision to go private is mostly, based, Musk says, on the fact that his other company, SpaceX, is privately held and is operated more efficiently than Tesla, as it isn't subject to the ups and downs of the stock market.

Musk, often the center of controversy, did not prove he had the funds to finance the operation - despite tweeting "funding secured".

Tesla did not respond to a request for comment on the proposed class-action complaints filed in the federal court in San Francisco.

The two separate cases have been filed in a court in the Northern District of California, which is not far from where Tesla is located, Palo Alto. Another, filed by William Chamberlain, seeks class action for those who bought or sold Tesla stock between August 7 and 10.

Musk's tweets on Tuesday temporarily caused Tesla's share price to surge more than 13 per cent, having since crashed back down by two-thirds of that gain after the US Securities and Exchange Commission began an inquiry into Musk's activity.

Musk has not offered evidence that he has lined up the necessary funding to take Tesla private, and the complaints did not offer proof to the contrary.

But he added that the conduct of Tesla and its chief executive Mr Musk had caused volatility and cost short-sellers hundreds of millions of dollars.

Tesla's market value exceeds $60 billion (around Rs. 4.14 lakh crores), and its shares closed Friday up $3.04 (approximately Rs. 210) at $355.49 (roughly Rs. 24,600).

According to the complaint, Isaacs bought 3,000 Tesla shares on August 8 to cover his short position, or bet that the price would decline, in the company.

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