Tesla was sued over CEO Elon Musk’s social media posts, including a Twitter poll on stock sales that caused the company’s stock values to plummet. Tesla investor David Wagner has requested access to internal records in order to investigate whether Tesla and Musk broke a deal with the US Securities and Exchange Commission and whether Tesla’s board members breached their fiduciary duties.
Musk agreed to have the company’s lawyers pre-approve tweets with relevant information about the company as part of a settlement with the Securities and Exchange Commission over his post about taking the firm private in 2018.
Tesla shares, which had been hovering near record highs, dropped roughly a quarter of their value after Musk indicated on November 6 that if Twitter users agreed, he would sell 10% of his ownership. He has sold approximately $14 billion in shares (about Rs. 1,06,800 crore) since then.
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