Tesla has been sued again by an investor who alleges that CEO Elon Musk artificially manipulated the stock price to damage investors who bet against his company.
Short-seller Andrew Left alleges that Tesla and Musk damaged all shareholders when Musk tweeted Aug. 7 that he had secured funding to take the company private at $420 per share. The tweet pushed the electric vehicle maker’s stock price up 11 percent that day. But it subsequently fell when Musk revealed that funding wasn’t locked down.
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On Aug. 24 Musk put out a statement saying the go-private deal was off.
Left alleges that Musk tried to “burn” short-sellers who borrow Tesla stock with hopes that the price will fall and they can replace the shares at a lower cost.
Tesla wouldn’t comment Thursday.
