Embattled electric auto manufacturer Tesla racked up its third class-action suit, filed today in California's Northern District Court, stemming from freakish and potentially unfounded tweets sent last week by CEO Elon Musk.
Musk's tweet caused a financial firestorm with Tesla shares immediately skyrocketing by nearly 11 per cent, although in the coming days they lost a good part of what they had gained.
Musk said he notified Tesla's board of directors August 2 of the proposed plan.
Musk said he will "continue to talk with investors" as he looks into taking the automaker private. Both law firms did not immediately respond to requests for comment.
Musk shocked markets last week with the tweeted announcement that he was considering taking Tesla private for $420 a share.
One assumes Yeagar jumped at the opportunity to buy Tesla stock and then sell it off at the proposed $US420 ($577) per share price tag, only to see its value drop after investors began to question the veracity of Musk's claims. In a statement published on the company's official website, the Tesla CEO also admitted that he was first approached for the move nearly two years ago.
Following that, Musk met with the Saudi fund representatives on July 31, which has already accumulated nearly 5% of Tesla stock via public markets.
In essence, what was initially considered to be a stupid weed joke has cost Musk the goodwill of Tesla fans (or at least those seeking to profit from his offer to go private at $US420 [$577]), deepened his already contentious relationship with short sellers, led to an SEC investigation, and could potentially cost him losses in court.
Saudi Arabia's Public Investment Fund (PIF) manages more than $230 billion in assets, but about 65% of that is stakes in large Saudi companies and most of the rest has been committed in overseas deals such as funding commitments to Blackstone Group LP's infrastructure fund or SoftBank Group's Vision Fund.