Tesla CEO and world’s second richest man, Elon Musk, is reportedly being sued by an investor in his company. The investor accused Musk of unsettling the markets and exposing his investors to high risk with his “erratic tweets”.
Chase Garrity an investor in the US electric car maker Tesla, has sued the founder of the company for his erratic Twitter messaging which according to him, has exposed the company to high legal risks and billions in price losses.
Garrity in a 105-page lawsuit published in the US court of Delaware, accuse Musk of violating the settlement negotiated with the US Securities and Exchange Commission in 2018.
The lawsuit also includes the entire Tesla board and its supervisory body for not calling Musk to order.
In May 2020 Musk caused a 14 billion dollar loss in market value on a single trading day with a series of unguarded tweets. He tweeted about Tesla’s market value being too high and how he was going to dispose of all physical assets.
The lawsuit stated that any further unbridled tweet from Musk would have dire consequences for Tesla’s future funding opportunities.
Earlier, Nairametrics posted a story revealing how Musk tweets had caused a serious ripple effect in the crypto world, the tweet helped Bitcoin gain $6000. He later invested heavily in Bitcoin. Also Manager Magazine had reported that analysts were not comfortable with such a move and view it as some kind of manipulation.
Musk had in April 2020, posted a joke photo of Tesla going bankrupt, which unsettled investors.
Tesla Management has not released a statement on this fresh lawsuit.