Tesla shares fall 5 percent on Wall Street scepticism, SEC probe reports

The Tesla logo is seen outside of their showroom in Washington DC.					Saul Loeb AFP  Getty Images

The board of directors of Tesla plans to meet financial advisors next week to formalise the next step to explore plans of CEO Elon Musk taking the company private.

Tesla chief executive Elon Musk got into legal hot water this week after announcing on Twitter he had sufficient financing already in hand to take the electric automaker private.

Musk lied about funding so he could push shares higher and ambush short sellers betting against the company, according to the shareholder complaint, which was filed Friday as a securities-fraud class action in federal court in San Francisco.

On Friday, two lawsuits were filed accusing Musk of seeking to harm short sellers by artificially running up the price of the company's shares through his Tuesday tweets.

As the result of his messages, Tesla share prices shot up 11 percent to nearly $380, causing short sellers to claim he had manipulated share prices and misled the market.

However, a source who is familiar with PIF's strategy said it was not now getting involved in any funding process for Tesla's take-private deal.

'Suicidal' mechanic steals plane from Seattle airport
Royal King told The Seattle Times he was photographing a wedding when he saw the low-flying turboprop being chased by two F-15s. The sheriff's office's public information officer Ed Troyer confirmed the incident was not being treated as a terror attack.

California-based Tesla has not made any comment about the lawsuits, neither has Mr Musk.

The US Securities and Exchange Commission has contacted Tesla to ask about Musk's assertion on Twitter that funding for his proposed deal was "secured", the Wall Street Journal reported on Wednesday.

The share fall has been fueled by investor skepticism over the deal's prospects and media reports that USA regulators are asking Tesla why Musk announced his plans on Twitter and whether his statement was truthful. The case is going to be consolidated and presented in front of a single Judge to solve the matter soon. "Anybody who purchased the stock on that news, if the news was in fact misleading, could have a claim, however, it would be very short class period".

August 1, 2018 - Tesla reports its biggest-ever loss but shares rise on Musk's claims of positive cash flow and profit in the second half of 2018, and signs of more consistent Model 3 production. In a letter to clients dated July 31, Einhorn said he was happy his Tesla lease had ended, citing issues with the car's touch screen and power windows.

Here are some of the key events in Tesla Inc's turbulent history as a public company.

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