NEW YORK, Sept. 13, 2018 /PRNewswire/ — WeissLaw LLP, a national class action, shareholder rights law firm with offices in New York, Los Angeles, and Atlanta, announces an investigation of the Board of Directors of Tesla, Inc. (the “Company” or “TSLA”) (NASDAQ: TSLA), for possible breaches of fiduciary duty.
Owners of TSLA shares wishing to discuss this investigation or having
any questions concerning this notice or your rights or interests, please contact:
1500 Broadway, 16th Floor
New York, NY 10036
On August 7, 2018, Elon Musk (“Musk”) tweeted “Am Considering taking Tesla private at $420. Funding secured,” causing TSLA shares to increase $45.47 per share. Soon thereafter, however, the SEC launched an inquiry into the truthfulness of Mr. Musk’s tweet because Musk did not appear to have any funding secured. Indeed, the fund manager of Scottish Mortgage Investment Trust, TSLA’s biggest institutional investor, reported being questioned by the SEC about the Musk tweet and added that Musk “needs help, and I mean that psychologically as much as practically.” Separately, the Board itself appears to have been caught by surprise by Musk’s tweet, waiting almost a week to form a special committee even though no formal offer was made, and Musk’s tweet itself was recanted shortly thereafter.
Furthermore, one month later, a video of Musk smoking federally banned marijuana and drinking whiskey at the end of a 2 ½ hour interview on “The Joe Rogan Experience” went viral, after Musk discussed some of his personal hardships. This followed reports of Musk’s intense workload of 120-hour weeks taking a toll on his physical health.
In the aftermath, TSLA shares have been battered. Many analysts have downgraded TSLA and significantly reduced their target prices, with one noting that the Company is “[n]o [l]onger [i]nvestable.” Multiple class action securities lawsuits were filed against the Company and Musk.
WeissLaw is investigating whether TSLA’s Board breached its fiduciary duties in connection with Musk’s tweet, his plan to take Tesla private, the Board’s reaction thereto, and regarding whether Musk should continue to serve in the executive suite.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients. For more information about the firm, please go to: http://www.weisslawllp.com/tesla-inc/
View original content to download multimedia:http://www.prnewswire.com/news-releases/investor-alert-weisslaw-llp-investigates-tesla-inc-300712505.html
SOURCE WeissLaw LLP