SAN FRANCISCO: A group of institutional investors in Tesla has sued CEO Elon Musk, alleging that his repeated “misstatements on Twitter” continue to harm the company and its shareholders.
The US SEC in February asked a US federal judge to hold Musk in contempt for violating a settlement deal reached in 2018.
The development came in response to Musk’s tweet on February 19 that “Tesla made 0 cars in 2011, but will make around 500K in 2019”.
Hours later, the billionaire sent a follow-up tweet indicating that the company will actually deliver just 400,000 cars this year.
The US regulators slammed the Tesla CEO because he “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers”.
In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private.