Pierce Bainbridge Investigating a Potential Class Action Against Tesla

NEW YORK, Sept. 10, 2018 /PRNewswire/ -- Pierce Bainbridge Beck Price & Hecht LLP is investigating whether Tesla (NASDAQ: TSLA) violated federal securities laws. If you or your company recently purchased or sold Tesla shares, bonds, or options and have lost over $100,000, you are encouraged to contact Pierce Bainbridge attorney David Hecht at (213) 262-9333 x 105 or [email protected] for additional information about your legal rights and options.

On June 17, 2018, Tesla's Chief Executive Officer Elon Musk tweeted that Tesla short sellers had "about three weeks before their short position explodes." Tesla's stock rose 4% on the first day of trading after Musk's tweet. Approximately three weeks later, on August 7, 2018, Musk tweeted: "Am considering taking Tesla private at $420. Funding secured." On this news, Tesla shares went from $341.99 on August 6, 2018 to $379.57 on August 7, 2018, an increase of 11%.  Musk holds approximately 22% of Tesla's shares.

On August 8, 2018, the U.S. Securities and Exchange Commission reportedly contacted Tesla to inquire about the accuracy of Elon Musk's tweets and why the announcement was not made in a regulatory filing.

On August 16, 2018, during aftermarket hours, The New York Times published an article stating "that [Tesla's] funding, it turned out, was far from secure." According to the article, "Mr. Musk . . . was referring to a potential investment by Saudi Arabia's government investment fund. Mr. Musk had extensive talks with representatives of the $250 billion fund about possibly financing a transaction to take Tesla private . . . . But the Saudi fund had not committed to provide any cash, two people briefed on the discussions said." On this news, Tesla's stock fell over 8% from its previous closing price, damaging investors. 

If you or your company have recently transacted in Tesla shares, bonds, or options and have lost over $100,000, please contact Pierce Bainbridge attorney David Hecht at (213) 262-9333 x 105 or [email protected] for additional information about your legal rights and options.

About Pierce Bainbridge Beck Price & Hecht LLP
Pierce Bainbridge has significant experience in prosecuting major securities fraud cases and taking cases through trial across the United States. We have represented pension funds, foundations, individuals, and other entities worldwide with offices in New York, Los Angeles, and Washington D.C.

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