Tesla did not respond to a request for comment on the proposed class-action complaints filed in the federal court in San Francisco. So, even if Musk did post the tweet hoping to damage short sellers by boosting Tesla stock price, it wouldn't be illegal unless it were untrue, she said. Then it fell back, losing about 7 per cent over two days, as doubts mounted about the feasibility of the going-private idea - and about the chief executive officer's declaration that funding was already in place.
Elon Musk - the founder, CEO, and lead designer at SpaceX, and the co-founder of Tesla - speaks at the International Space Station Research and Development Conference in Washington, US, July 19, 2017.More news: Trump touts record with minorities after Omarosa criticism, ahead of Charlottesville anniversary
"Am considering taking Tesla private at $420".
The two separate cases have been filed in a court in the Northern District of California, which is not far from where Tesla is located, Palo Alto. Another, filed by William Chamberlain, seeks class action for those who bought or sold Tesla stock between August 7 and 10. The Securities and Exchange Commission is investigating Musk's disclosure of the potential deal, according to reports earlier this week.
Short-sellers of Tesla's stock have faced increasing aggression from Musk over recent months, with the billionaire citing the lack of market support as one of the main reasons he wants to take the company private.More news: Cryptic captain Pogba: 'There are things I can not say'
Isaacs accused Musk of making false and misleading statements to inflate Tesla's stock price, and that Tesla "doubled-down" on those statements by failing to correct them.
According to his complaint, Isaacs bought 3,000 Tesla shares on August 8 to cover his short position.
One plaintiff Kalman Isaacs said the tweets were false, misleading and they amounted to a "nuclear attack" created to "completely decimate" short-sellers.More news: Don’t forget we’re the best, Guardiola tells City stars