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I don't know the details or the legal angles, and I didn't read much of the story, but I thought this statement was funny:
"The big picture: Shareholders are say Musk's tweet claiming he would take Tesla private was an attempt to manipulate Tesla's stock price and ruin plans for short-sellers."
So, are the shareholders upset because he ruined their short positions? I'm not sure how those ideas go together.
I think the Elon saga will continue to be interesting as we see how this whole thing plays out....
Its kind of interesting situation because no doubt the people who got killed by this are the short-sellers so they are the most likely to pursue a lawsuit, however, if you have borrowed a stock so as to sell it short, then you are not really a shareholder are you, as technically you don't own the stock anymore?
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So the tale that is being told is that Musk wanted to screw the shorts and he pumped the price. But the suit is on behalf of anyone who bought "after 12:48pm eastern standard time on August 7, 2018 through and including August 8, 2018," which is a very narrow window, beginning with the time of the tweet. The suit is saying that Musk damaged anyone who bought during that window, because their purchase price was unsustainable due to Musk's statement boosting it up.
Could be. Who knows?
Bob.
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Update: reading this through again, I realized that "anyone who bought" in that window and at those prices would include the shorts who scrambled to cover by purchasing the stock, so it's both a shareholder and a short-holder lawsuit.
Basically i beleive this is purely a desperate ploy by Musk to get price above the threshold for the convertible debt that matures early next year , if this debt is called TSLA will have to go to market for funds ( this refinancing of old debt potential is on top of any new debt likely due to lack of cashflow/cashburn issues) . Given the current Tesla bonds are basically junk and the run up in TNX in recent years going to debt market will be difficult so a cap raise is on the books . given current cash flow and problems all round that might not be an easy sell after the litany of broken deadlines . Break the resolve of the fan bois and it will be a highly different chart . The same thing dogging the car sector are about to come to light in the solar area , its going to get way worse before it gets better . I think the shorts will be paid in the long run tbh
Make a profit and get that positive cashflow and the shorts are fried , that should be his only objective . Take care of the business and the share price takes care of itself . Clearly Musk is stressed and he knows he is up against it
