He hasn't supplied evidence that it was; nor has anyone else.
"Musk's tweets helped push Tesla's stock price more than 13 percent above the previous day's close.
It had also caused Tesla securities buyers to pay inflated prices, he claimed. Isaacs is seeking approval to become the lead plaintiff in a class-action lawsuit representing all Tesla shareholders who traded after Musk's tweet on Tuesday or at any time on Wednesday. Musk is Tesla's largest shareholder, with a 20% stake in the company.
Many investors place their faith in Tesla because they believe that it is leading the electric vehicle revolution alone. The case is going to be consolidated and presented in front of a single Judge to solve the matter soon. After adjusting for inflation, that's more than the record-setting buyout of RJR Nabisco that closed in 1989. In a letter to clients dated July 31, Einhorn said he was happy his Tesla lease had ended, citing issues with the car's touch screen and power windows.
"Shareholders could potentially be misled if the statement omits material information", attorney Joe Tabacco said.
Even a "preliminary commitment" with an investor or bank would be enough to support the idea that Musk's statements were made in "good faith", Fisch said. "Anybody who purchased the stock on that news, if the news was in fact misleading, could have a claim, however, it would be very short class period".
And it is unlikely a Wall Street firm would risk backing Tesla, which is burning through about $1 billion a quarter and has not had a single profitable year in its 15 years of existence, said another.
Tesla is facing a make-or-break moment in its eight-year history as a public company, as competition from European automakers is poised to intensify with new electric vehicles from Mercedes, Audi, BMW and other rivals. He also said he had secured funding for the proposal, without providing details. The action was filed in the Northern District of California and is captioned Kalman Isaacs v. Elon Musk, et al.