Market News

Tesla Sued over Musk’s Stock Sales Tweets — Report

According to a report published by Reuters, Tesla, Inc. (NASDAQ:TSLA) has been sued by an investor over CEO Elon Musk’s social media posts.

Since November 6, when Musk asked Twitter users whether he should sell 10% of his stake in the company, the stock price has dropped down by nearly 25% after hovering near record highs.

Details of the Lawsuit

The lawsuit was filed in the Delaware Court of Chancery on December 16 by David Wagner. The investor is seeking access to the company’s books and records related to Musk’s tweets to find out whether the stock sales tweets were approved or reviewed beforehand.

Wagner also wants to check if the EV-maker’s board members have failed to follow their fiduciary duties.

Since Musk’s tweet on November 6, he has sold Tesla shares worth around $14 billion.

Past Lawsuits

In March, Musk and Tesla’s Board were sued by another shareholder who accused him of violating a settlement reached with the Securities and Exchange Commission (SEC) in 2018 and causing billions of dollars of losses for the company’s shareholders.

Another Tweet by Musk

On December 19, Musk said in a tweet that he will pay over $11 billion in taxes this year, Reuters reported.

The tweet was in response to Democratic U.S. Senator Elizabeth Warren’s recent tweet asking Musk to pay taxes and stop “freeloading off everyone else.”

Warren’s tweet came after Musk was named “person of the year” by Time magazine.

Wall Street’s Take

Last week, Daiwa analyst Jairam Nathan maintained a Hold rating on the stock and raised the price target to $1,050 from $860 (12.6% upside potential).

Additionally, Deutsche Bank analyst Emmanuel Rosner reiterated a Buy rating on Tesla with a price target of $1,000 (7.2% upside potential).

Overall, the stock has a Moderate Buy consensus rating based on 13 Buys, 8 Holds and 6 Sells. The average Tesla stock forecast of $985.64 implies a 5.7% upside potential. Shares have gained 50.2% over the past six months.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Tesla’s performance.

According to the tool, compared to the previous year, the company’s website traffic registered a 1.2% rise, month-over-month, in global visits in November. Moreover, Tesla website traffic has increased 1.7% year-to-date against the same period last year.

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