Elon Musk's spew of tweets have yet again landed him in hot water with Tesla shareholders. This is not the first time that this has happened as this situation has repeated itself quite similarly.
This time, he as well as the Tesla board are all staring down a suit coming from a disgruntled investor claiming some of Elon Musk's tweets violated the previous 2019 settlement that Musk had to reach along with the Securities and Exchange Commission that was meant to temper his open missives regarding the company.
My Twitter is pretty much complete nonsense at this point— Elon Musk (@elonmusk) April 19, 2019
Tesla CEO Elon Musk
On Friday, March 12, Gizmodo reported, for those that might not really remember, back in 2018, the SEC also slapped Elon Musk with quite a hefty set of fraud charges, as seen on the SEC release, right after the CEO had tweeted that he was actually considering taking the company private if Tesla stock price did hit $420 per share.
Shareholders could either to sell at 420 or hold shares & go private— Elon Musk (@elonmusk) August 7, 2018
As the later lawsuit explained, he had actually no financing details to back up the said bad tweet. This then prompted a settlement along with the SEC that had drained both Musk and Tesla of $20 million, according to the story by Tech Crunch.
This result then led to mandating that Elon Musk would step down from his position as the company's chairman for the span of at least three years, and that there would be an independent committee assigned to temper any of Elon Musk's public "communications" that might actually be relevant to Tesla shareholders. This even included bad tweets.
Chase Gharrity lawsuit against Elon Musk
For those that have been following Elon Musk's twitter feed, it can be seen that the previous "bad tweets" haven't really gone anywhere. That's basically the subject of the latest suit that levied against Elon Musk coming from Chase Gharrity which is an investor who also alleges that the CEO's seemingly "increasingly erratic" behavior on Twitter has reportedly led to "millions of dollars of losses" for both him as well as a number of the other Tesla shareholders.
Tesla's very own board of directors are also named as certain defendants in the particular case for failing to reign Elon Musk even after the previous SEC decision. It is also worth noting that not too long after being able to reach the initial settlement, the SEC versus Elon Musk battle then sparked yet again after the CEO had tweeted about Tesla's reported production schedule for that particular year. This then led the commission to ask a certain judge to hold the CEO in contempt of court.
Elon Musk 'bad tweets'
Meanwhile, it was also noted that Elon Musk's "bad tweets" have just continued one after another. One of the classics even called out in Gharrity's recent lawsuit even included Elon Musk's tweet last May 2020 saying Tesla stock prices were too high. This then led to the company taking a huge $13 billion dip. Gharrity's lawsuit was uploaded to Bloomberg Law.
Tesla stock price is too high imo— Elon Musk (@elonmusk) May 1, 2020
Related Article: Why Investors Are Suing Elon Musk Over His Tesla Tweets
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Written by Urian Buenconsejo