Tesla chief executive Elon Musk and the board of the electric car company have been sued by an investor who blamed Musk for abusing his 2018 settlement with the Securities and Exchange Commission over his Twitter use.
As indicated by an objection unlocked late Thursday in Delaware Chancery Court, Musk’s “erratic” tweets, including a post last May 1 that Tesla’s stock price was “excessively high,” and the disappointment of Tesla’s board to screen his consistence with the SEC settlement have presented investors to billions of dollars of misfortunes.
Tesla didn’t quickly react to a solicitation for input.
The SEC settlement originated from Musk’s August 2018 tweet that he was thinking about taking Tesla private and had “funding secured” for a potential $72 billion exchange.
He and Tesla each concurred the next month to pay $20 million in common fines to settle with the controller, and Musk consented to have Tesla lawyers vet a portion of his tweets ahead of time.
The investor claim said Musk has kept giving tweets without the necessary development endorsement. It looks to have Musk and other Tesla directors pay harms to the company for breaking their trustee obligations.