Tesla founder, Elon Musk, sued by one of the company's investors
- Elon Musk has been sued for exposing Tesla to high legal risk and costing Tesla a $14 billion loss in value
- Tesla's investor named Chase Garrity is behind the lawsuit, and Garrity want Musk unguarded tweets to end
- Musk has a habiting of hyping assets like bitcoin and dogecoins, which he promotes on his Twitter page
Tesla founder, Elon Musk, has been dragged by one of the company's investors, Chase Garrity, to court over what is termed erratic tweets. Musk was accused of putting investors at risk with his tweets.
Garrity's claim could be linked to some of the billionaire's tweets last year May. Musk had tweeted that Tesla's market value was too high, stating that he was going to do away with the physical assets of Tesla.
Those series of tweets cost Tesla a $14 billion loss in market value, Nairametrics reported. The founder's erratic tweets had compelled Garrity to file a lawsuit against Musk, who was said exposed the car manufacturer to legal risk.
It was also mentioned that the Space X founder has breached its settlement with the US Securities and Exchange Commission in 2018, with his unguarded tweets. Musk has been viewed as using his status to influence market activity.
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The board of Tesla was also mentioned in the lawsuit for not intervening to stop Musk. Garrity's lawsuit is contained in 105 pages, which also stated that Tesla will have future fundraising problems if Musk continues without being guarded. The 49-year-old owns 20% of Tesla's shares.
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Musk's influence in market activity has been tested in bitcoin, with the entrepreneur's tweet lifting the cryptocurrency value before he went ahead to invest following the advice of Microstrategy founder, Michael Saylor.
Since he hyped bitcoin, contributing to the increase in market valuation, Tesla has invested $1.3 billion in the digital asset and has made about $1 billion from the investment.
Aside from throwing his weight and influence behind bitcoin, the engineer has also been promoting Dogecoin, which is an altcoin gaining popularity in the cryptocurrency market due to Musk's public support.
He is currently the second richest man on earth, with about $174 billion according to Bloomberg Billionaires Index, behind Jack Bezos, founder of e-commerce platform, Amazon, who account for a net worth of $180 billion.
Meanwhile, Legit.ng had earlier reported how Fashion designer, Mai Atafo, rose to the top of the fashion business in Nigeria, despite the challenges within the industry.
Atafo was able to eliminate the influence of middlemen with three business strategies that have been the industry's blueprint in surviving in Nigeria's fashion business.
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Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investment analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.
Source: Legit.ng
