Dumb New Tesla Lawsuit over Model 3 Production

c2c

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#6
“Rosen Law Firm, a global investor rights law firm, announces it has filed a class action lawsuit on behalf of purchasers of the common shares of Tesla, Inc. (NASDAQ: TSLA) from May 4, 2016 through October 6, 2017, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Tesla investors under the federal securities laws.”

The stock went from about $200 to $345, may ‘16 to oct ‘17. So can they really sue because the stock’s value increase? I don’t get it.
 

MelindaV

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#7
I do believe this is more about the Solar City end of the company than Model 3, but could be mistaken. Either way, it is only to benefit the filing attorney.
 
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#8
No, the lawsuit is definitely about the Model 3 launch. I am NOT a lawyer, but this is from their press release:

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) contrary to defendants’ representations that Tesla was prepared for the launch of its Model 3 sedan, in reality, Tesla had severely inadequate inventory and was woefully unprepared to launch Model 3 sedan as anticipated; and (2) as a result, Tesla’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Given that the relevant statute is:

No solicitation … shall be made by means of any proxy statement, form of proxy, notice of meeting or other communication, written or oral, containing any statement which, at the time and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact, or which omits to state any material fact necessary in order to make the statements therein not false or misleading …

I think they will have a really hard time showing that Tesla knew "at the time and in the light of the circumstances" that the statements were materially false or misleading. Any reasonable investor or follower of Tesla should have known in the light of Elon-time circumstances that the Model 3 launch timing was not a guarantee.