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Investor Sues Elon Musk For Damages Due To His Tweets

Elon Musk

Tesla boss Elon Musk is once again in trouble because of his comments on Twitter: An investor has sued him for damages in the USA. He accuses Musk of having had a negative impact on Tesla’s stock market value with his tweets.

It’s not the first time Elon Musk has had to answer for tweets he’s posted. As a little reminder: As early as 2018, the US Securities and Exchange Commission investigated whether Elon Musk had manipulated the Tesla price with the help of tweets. At that time he had fantasized about privatizing the stock corporation. It was agreed at the time that it had been an influence on the share price and Musk was removed from the post of chairman of the board of directors. In addition, he had to undertake to the stock exchange supervisory authority not to publish any more messages that affect his companies in any form that had not been agreed in advance.

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The new lawsuit now also deals with this agreement. The plaintiff alleges that Musk has broken the agreement with the stock exchange regulator countless times since then and has repeatedly caused chaos. As an example, it is cited that Musk caused a loss on the stock market in May 2020 with the brief message “In his opinion the Tesla stock is overvalued” (“Tesla stock is too high IMO”). After the tweet, the company’s value fell by around 14 billion US dollars within a short period of time, which was no coincidence.

Uncontrolled tweets

The investor is now demanding consequences. Most of all, he has the view of the future that he fears that Musk will cause even more damage to his tweets. According to Bloomberg, “more uncontrolled tweets from Musk could have a serious impact on the company’s ability to secure funding.” The plaintiff is also demanding compensation for losses already incurred in recent years, as well as interest.

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The complaint goes on to say that Musk’s statements drive away investors and exercise too much power against the very people who stood in the way of him and his statements in order to prevent financial damage.