stock price: Tesla to be examined by SEC over Elon Musk's 'funding secured' tweet report Read more The lawsuits filed by Isaacs and William Chamberlain said Musk's and Tesla's conduct artificially inflated Tesla's stock price and violated federal securities laws, according to The Guardian. Short-sellers borrow shares they believe are overpriced, sell them, and then repurchase shares later at what they hope will be a lower price to make a profit. The lawsuits were filed three days after Musk stunned investors by announcing on Twitter that he might take Tesla private in a record 72bn transaction that valued the company at 420 per share, and that funding had been secured . In one of the lawsuits, the plaintiff Kalman Isaacs said Musk's tweets were false and misleading, and together with Tesla's failure to correct them amounted to a nuclear attack designed to completely decimate short-sellers. Such investors have long been an irritant for Musk, who has sometimes used Twitter to criticize them. The stock has since given back more than two-thirds of that gain, in part following reports that the US Securities and Exchange Commission had begun inquiring about Musk's activity. Musk's tweets on 7 August helped push Tesla's stock price more than 13% above the prior day's close.
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