Elon Musk accused in lawsuit of fraud over going-private proposal

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

On Tuesday he tweeted that he had secured funding to buy all Tesla shares and take the company private.

Musk has not offered evidence that he has lined up the necessary funding to take Tesla private, and the complaints did not offer proof to the contrary. The 3% to 5% Tesla stake that the sovereign fund bought this month could be an indication that they're ready to invest in an EV future.

Musk, often the center of controversy, did not prove he had the funds to finance the operation - despite tweeting "funding secured".

Investors and analysts viewed PIF as a natural financing partner. Musk, however, was not telling the truth.

"We were not aware of any transaction".

The sources requested anonymity because the deliberations are confidential.

Wall Street is awash with speculation on who might team up with Musk to do a deal. The total cost is about $72 billion.

Tesla's board has not received a detailed financing plan from Musk and is seeking more information, sources told Reuters on Thursday.

The proposed class-action complaint filed by Kalman Isaacs in San Francisco federal court accused Tesla and Musk of trying to artificially manipulate the company's stock price.

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CalFire Mendocino issued a tweet Monday at around 7:30 p.m. and said more information will be released as it becomes available. The fire, which is roughly the size of Charlotte, North Carolina, was 59% contained as of Sunday morning.

It's unclear when Musk sent the shorts to Einhorn but, in the past week, the Tesla chief executive has found himself embroiled in a controversial move to take his auto company off public markets .

Shorting a stock can temporarily lower its price, making short investors a frequent target of CEO wrath.

Thomas Farley, former head of the New York Stock Exchange operator NYSE Group, said Wednesday on Twitter the matter would be an "easy one" for the SEC to investigate. Instead, it's the tweet's final two words, "funding secured", that could create problems.

Short-sellers racked up paper losses of $1.3 billion on Tuesday after Tesla shares rallied 11 percent.

Even a "preliminary commitment" with an investor or bank would be enough to support the idea that Musk's statements were made in "good faith", Fisch said.

Perhaps that's what was missing when Elon Musk and Masayoshi Son met past year.

Since rising sharply in the immediate aftermath of Musk's statement, Tesla stock has largely given back its gains, closing on Friday at $355.49.

Furthermore, JP Morgan Chase, Goldman Sachs, Morgan Stanley and Citigroup are looking at different ways a deal might be structured, banking industry sources say. The one thing he really doesn't like is the "negative propaganda" from short-sellers. This way, there would be no floating capital even if shares continued to be tradable on markets.

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