TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Short Sellers Sue Musk

Discussion in 'TSLA Investor Discussions' started by S'toon, Aug 10, 2018.

  1. S'toon

    S'toon Knows where his towel is

    Joined:
    Apr 23, 2015
    Messages:
    2,986
    Location:
    AB
    WWWWAAAAAAHHHHH!
    Full article at:
    Lawsuits accuse Tesla's Musk of fraud over tweets | CBC News
     
    • Informative x 1
    • Like x 1
  2. Russell

    Russell Supporting Member

    Joined:
    Sep 25, 2012
    Messages:
    400
    Location:
    Silicon Valley
    #2 Russell, Aug 10, 2018
    Last edited: Aug 10, 2018
    Isaacs said Tesla's and Musk's conduct caused the volatility that cost short-sellers hundreds of millions of dollars from having to cover their short positions...

    According to the complaint, Isaacs bought 3,000 Tesla shares on Aug. 8 to cover his short position.

    I thought short sellers were smart and sophisticated traders. Apparently not!
     
  3. Ludalicious

    Ludalicious Member

    Joined:
    Feb 22, 2018
    Messages:
    350
    Location:
    Vancouver
    Others are joing the suit too. He better hope that the funding was actually there. This suit has some ground IMO. You better be able to back up that funding claim.... especially when people have millions on the line
     
    • Disagree x 6
    • Like x 3
  4. smalltownguy

    smalltownguy Member

    Joined:
    Jun 12, 2017
    Messages:
    58
    Location:
    Iowa
    $420 a share, cheap. Buy! Buy! Buy! all of it!!!

    I don't have that kind of money, but others do. Tencent. The Saudi's. I'm sure Elon knows others.

    Elon isn't selling his 22%. I would love to be his business partner.

    Lawsuit has no basis, other than proving you don't bet against Elon.
     
    • Like x 4
    • Disagree x 2
  5. gaswalla

    gaswalla P4201/85/airsusp/pano/19i

    Joined:
    Sep 23, 2012
    Messages:
    2,023
    Location:
    San Diego
    This is such hypocrisy.. short sellers have no accountabilities: they lie and manipulate stocks daily for self-interest. And then, when a company comes up with a plan that limits their exposure to their enemies, these folks then sue?
     
    • Like x 19
    • Love x 1
  6. GSSREDDY

    GSSREDDY Member

    Joined:
    Jun 22, 2018
    Messages:
    9
    Location:
    Glendale
    Only Stock owners can sue Elon if they suffered financially. Short sellers do NOT Own the stock, they are not eligible to sue,
     
    • Disagree x 3
    • Like x 2
  7. Mobius484

    Mobius484 Supporting Member

    Joined:
    Oct 21, 2016
    Messages:
    228
    Location:
    Coeur d'Alene, ID
    I have not suffered financially for investing in Elon. He even warned these guys, and they still want to cry.... way I see it, he’s even giving them an out at 420... they should be thankful no?
     
    • Like x 1
  8. rjcbox

    rjcbox Member

    Joined:
    Sep 4, 2013
    Messages:
    540
    Location:
    PA, USA
    "short-burn-of-the-century"
     
    • Love x 1
  9. renim

    renim Member

    Joined:
    Apr 6, 2013
    Messages:
    915
    Location:
    Oz
    • Like x 2
    • Helpful x 1
    • Love x 1
  10. EVMeister

    EVMeister Member

    Joined:
    Apr 8, 2018
    Messages:
    296
    Location:
    England
    What parasites.
     
    • Like x 5
    • Disagree x 1
  11. Just a Reader

    Just a Reader Member

    Joined:
    Mar 10, 2014
    Messages:
    216
    Location:
    Frankfurt, Germany
    Your statement is based on what exactly? A careful legal analysis and your experience as a securities lawyer?

    The NY Times asked experts and they raised the same issues as this law suit. Therefore it seems to be quite brave to claim that it has "no basis".
    Do you believe that Elon ran this tweet past his legal department and they said: "don't worry, send it"? I have no investment interests in Tesla, so I have no dog in this fight, but this looks like the ticking time bomb of Elon Musk + Twitter may have finally gone off.

    Finally, many Tesla buyers and investors seem to claim that they do something that's morally right, so I'm surprised that they would welcome a big time investment by the sovereign wealth fund of an aggressive and repressive terror state. "Pecunia non olet", eh?
     
    • Informative x 1
  12. malcolm

    malcolm Active Member

    Joined:
    Nov 12, 2006
    Messages:
    2,833
    Er....full disclosure?

    "Elon has huge steel balls. He truly does": Justine Musk

    Elon Musk Quotes
     
  13. ChrML

    ChrML Member

    Joined:
    Feb 6, 2017
    Messages:
    357
    Location:
    Norway
    Hahah this is ridiculous. They are never going to win that.

    1. Elon tried to warn them multiple times. They didn't listen / assumed he was lying.

    2. They chose to bet against Tesla.

    3. They were wrong. Now they sue Elon for "lying".
     
  14. neroden

    neroden Model S Owner and Frustrated Tesla Fan

    Joined:
    Apr 25, 2011
    Messages:
    10,479
    Location:
    Ithaca, NY, USA
    They're still entirely hinging their case on being able to prove that Musk didn't have funding secured.

    Secured means "lined up" -- a verbal commitment is good enough, according to quotes from an M&A lawyer.

    Musk has funding secured -- I have no doubts.
     
    • Like x 7
  15. bhzmark

    bhzmark Supporting Member

    Joined:
    Jul 21, 2013
    Messages:
    2,560
    I read the complaints. These are just placeholders until they see what happens. Utterly inadequate complaints.

    These attys are true parasites and stupid ones at that. Amazing that while doctors are prescribing opoids, food makers are selling sugar to kids, and these plaintiffs attys waste their time with nonsense failing attempts to recover the losses suffered by stupid short sellers. Really truly scumbag waste of carbon life forms.
     
    • Like x 5
    • Love x 4
    • Disagree x 1
  16. smalltownguy

    smalltownguy Member

    Joined:
    Jun 12, 2017
    Messages:
    58
    Location:
    Iowa
    Calm down Francis, this is an internet message board. You did not pay for "a careful legal analysis and experience as a securities lawyer" so don't expect to get that here.

    Google the term "fake news NY Times" before you think that they are the end all know all. A reporter can ask any number of "experts" and find one to say what will make an interesting news story.

    Elon knows what he is doing, that's all that is really important. He didn't just wake up and send the tweet. He had hinted at it with the "short burn of the century" on May 4, 2018.

    Finally, yes Tesla investors would love to see the shorts pay! Even if it's not morally right.
     
    • Like x 2
    • Disagree x 1
  17. strangecosmos

    strangecosmos Non-Member

    Joined:
    May 10, 2017
    Messages:
    671
    Location:
    Koopa Kingdom
    It’s this simple:
    • If Elon lied about having funding secured, he’s in serious legal trouble.
    • If Elon told the truth, he’s fine.
    It seems kinda bananas that someone would launch a lawsuit alleging that Elon was lying, with no evidence to that effect. But frivolous lawsuits are nothing new, I guess.

    P.S. There is nothing wrong with shorting Tesla. It doesn’t hurt anybody, except the people who lose money doing it.
     
    • Disagree x 1
  18. Electroman

    Electroman Active Member

    Joined:
    Aug 18, 2012
    Messages:
    4,701
    Location:
    TX
    This is like thieves suing an owner they are not able to steal anymore because he changed the lock. - or lied about changing the lock.
     
    • Like x 8
    • Disagree x 1
    • Love x 1
  19. Electroman

    Electroman Active Member

    Joined:
    Aug 18, 2012
    Messages:
    4,701
    Location:
    TX
    Trent Eady - I thought you are on the good side. Have you now gone over the deep end?
     
    • Like x 1
  20. TaoJones

    TaoJones Beyond Driven

    Joined:
    Nov 10, 2014
    Messages:
    2,912
    Location:
    The Americas
    Academic point taken - except that shorting doesn’t happen in a vacuum. While the act itself may be benign to a point, the ancillary shenanigans do cause damage. Which is to say, sometimes short activity in general causes damage over and above the act itself.

    Analogy: Shouting “Fire” in a theatre. In an empty theatre, who gets hurt? Still not a good idea, and that’s why it’s become actionable.

    Perhaps not the best analogy.

    How about “Shorting stock is not illegal. Writing false articles to support a short position is.”
     
    • Like x 2
    • Informative x 1

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC