The point is actually in the next line :"His lawsuit, and another filed by William Chamberlain, accuse Mr Musk and Tesla of violating federal securities laws and _artificially_ inflating Tesla's share price."
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Short sellers artificially devalue Tesla’s price (and many companies that ate shorted) and thats part of the game. Tesla is actually structured as a financial company, especially with SCTY being combined. The easiest way to destabalize a financial company is destroy counterparty trust. There was a video about the Tesla shorts doing this to other smaller less well known firms. Both media blitzs by Shorts and Musk are questionable but thats how it works.
That's not at all how it works.
Musk is the CEO of Tesla and made a public statement. Under US and EU securities laws, if he lied in the tweet, he's liable for the losses of anyone who traded (or didn't trade) based on the tweet, whether or not they were a short seller.
Shorts don't speak for the company. While releasing false information for the purposes of manipulating stock prices is illegal, none of the Tesla shorts have been proven to have done so.