Tesla was slapped with litigation by its investor David Wagner over the CEO of Tesla. Wagner asserted that the Tesla CEO, Elon Musk’s survey, as a tweet, on a 10% stock sale caused a remarkable deduction in Tesla stocks. As per the lawsuit, the plaintiff asked for an investigation into whether Musk’s tweet violates his last obligation to approve his social media contents under the surveillance of a securities lawyer or not.
In 2018, the Securities and Exchange Commission filed a lawsuit against Musk over his tweet on taking the company private. In that lawsuit, Musk settled the litigation by agreeing that as of now, he should get the confirmation of lawyers about tweets with material information about the company.
On 6th November 2021, just a quarter after Musk’s tweet, Tesla shares lost their value. Due to the positive response of Musk’s followers to sell his stock, he has sold $14 billion worth of his shares.
The lawsuit does not list Musk as a defendant and it seeks credible documents which show Tesla is not mismanaged.