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Tesla shares fell as much as 12% on Friday after CEO Elon Musk tweeted that the company’s shares are priced “too high.”
The company just a few days earlier reported a strong quarter, sending shares higher. Tesla shares were trading at 760.23 just before Musk tweeted and then fell to a session low of 717.64, before falling further.
Musk has struggled with the SEC for tweeting about the company’s stock in the past. Since then, Musk has agreed to present his public statements on Tesla’s finances and other issues for consideration by his legal adviser. The deal came after Musk’s famous tweet in August 2018 that he said he wanted to make Tesla private at $ 420 a share and that he had secured the funds to do so. It is unclear if Musk had that approval for his tweets on Friday. The SEC declined to comment.
Tesla is in the midst of defending itself in a significant volume of stock from shareholders and others. A federal judge decided in early April that Tesla and Musk must face a lawsuit over their infamous $ 420 tweets. Shareholders claim that Tesla cheated on them when Musk said on Twitter in 2018 that he was considering taking Tesla privately for $ 420 per share. , and that he had secured funds for the transaction. Stocks soared, trading stopped, and volatility continued.
In January, all Tesla board directors, in addition to Elon Musk, settled a shareholder lawsuit over the company’s $ 2.6 billion acquisition of SolarCity in 2016. They paid $ 60 million for their part of the deal. But Musk must be tried as the last defendant against claims that he used Tesla to rescue a failed solar installer, which he co-founded and directed with his cousin cousins, Lyndon Rive and Peter Rive.
The tweet about Tesla’s actions was among others by Musk in the morning. Musk also said he was “selling almost all of the physical possessions” and restoring people to their freedom, presumably referring to the shelter orders at the scene. He later shared the lyrics of the Star Spangled Banner with his followers.
Musk has been outspoken about the coronavirus pandemic, and told investors in the company’s earnings call Wednesday that shelter-in-place orders are “forcibly imprisoning people in their homes against all their rights. constitutional “.
Tesla did not respond to multiple requests for comment.
–Lora Kolodny contributed to this report.
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