Elon Musk is suspected of manipulating the price of Tesla shares

Elon Musk is suspected of manipulating the price of Tesla shares

August 12, 2018 0 By autotimesnews

On August 7, the news appeared on the network that Elon Musk, the founder and owner, of Tesla company is going to buy out all the company’s shares, for reorganization into a private organization. But some shareholders are confident in price manipulation.

Elon Musk, the founder, and the executive director of Tesla, is suspected of deliberate actions to manipulate the value of shares on his company. According to some shareholders – they were deceived and filed a group suit in the San Francisco court.


According to some shareholders, the message Mask about the desire to close public access to the company’s shares and redeem all available in free access is a deception aimed at artificially raising the value of securities.

Recall that on August 7, the CEO of Tesla announced that he intends to acquire shares of the company at a cost of 420 dollars per unit. The total value of available securities would be $ 72 billion. And at the time of publication of the “tweet”, the value of the shares was about 383-387 dollars.

In turn, this message led to a sharp jump in price by 13%, but after publishing information about the filing of a collective action, the cost dropped by two-thirds.

According to Elon Musk, he was going to buy out all shares, since public access to securities strongly influences the company’s long-term strategy. And he has to make decisions profitable for the current reporting quarter, without taking into account the consequences in the long term. Translation of the company into a private one will help focus on the main, and continue to develop renewable energy technologies.

As an example of the success of a private company, he cited SpaceX, whose founder is also. This company achieved excellent results despite the initial skepticism around it.

Unfortunately, now it is difficult to answer about the fairness of the claim. If the truth of deliberate fraud turns out to be, then its goal was the players of the stock exchange, playing on “shorts” (earning a decrease in the value of shares). But while Musk did not give any answer to the questions of foreign publications.

In the meantime, Tesla is preparing another novelty until 2022 – a compact electric hatchback that will supplement the company’s budget car segment. This is reported by the foreign publication Autocar with reference to Elon Musk.