Short-Sellers Sue Tesla After Musk's 'Going Private' Tweets

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An anonymous reader quotes the BBC: Elon Musk’s bombshell announcement that he is thinking of taking the electric car company Tesla private has landed him a lawsuit from unhappy investors…. His comments caused the share price to shoot up 11% to nearly $380, though it has since fallen back. Short-sellers, who bet on share price falls, allege he misled the market….

Short-sellers, who make a profit by borrowing shares, selling them and then buying them back at an expected lower price, claim to have lost millions thanks to Mr Musk’s comments. Plaintiff Kalman Isaacs alleges the announcement was aimed at “completely decimating” short-sellers. His lawsuit, and another filed by William Chamberlain, accuse Mr Musk and Tesla of violating federal securities laws

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