Tesla investor sues Elon Musk over ‘erratic’ tweets

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Elon Musk is once again back in the news for his erratic tweets on the company's financial performance, as a Tesla investor has sued him and the board of the company for violating a settlement with the US Securities and Exchange Commission (SEC) that barred Musk from tweeting on the sensitive financial information related to the electric car maker.</p>
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The lawsuit claims that Musk is exposing Tesla to potential penalties from regulators and could drive down its stock.</p>
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Musk's "erratic" actions have caused the company "substantial damage", including billions of dollars in lost market capitalisation, reports TechCrunch, citing the lawsuit.</p>
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Tesla did not comment on the lawsuit.</p>
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Despite reaching a settlement with the US SEC in April 2019 after weeks of negotiation over his controversial Twitter activities, Musk had agreed to more specific oversight on his tweets about the company.</p>
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This latest lawsuit alleged that Musk's tweeting violates the April 2019 settlement. The lawsuit cited several tweets sent from Musk's account, including a tweet on May 1, 2020 which said: "Tesla stock is too high IMO."</p>
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The tweet sent Tesla shares into a free fall — nearly 12 per cent.</p>
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The latest lawsuit alleged that the Tesla board has also failed to secure a general counsel "who can provide advice untainted by Musk".</p>
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According to the settlement reached in 2019, all tweets from Musk about Tesla's financial health, sales or delivery numbers were to be pre-approved by a company lawyer.</p>
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His notorious tweet in August 2018 when he posted about Tesla "going private, funding secured" at $420 a share, cost him his role as Tesla Chairman.</p>
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The tweet resulted in Musk and Tesla reaching a settlement of fraud charges with the SEC.</p>
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The settlement included $40 million in penalties, split equally between the company and Musk, and the removal of Musk as chairman of the Tesla board.</p>
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<em>(IANS)</em></p>