Tesla was supplanted as the fifth-most valuable company on the S&P 500 Index by old-economy stalwart Berkshire Hathaway Inc. The company’s recent stock decline marks a major retracement of several milestones reached during its meteoric rise in 20. The social media companys revenue grew 22 year over year to 1.57 billion, matching analysts expectations. The analyst added that hedge funds seem to be shifting to a negative bias on the stock due to risk there’s been “a loss of focus” on Tesla since Musk acquired Twitter. Twitter ( TWTR) posted its fourth-quarter earnings report on Feb. “Weakening macro data in China is leading to concerns on Tesla, who has already lowered price once to stimulate demand and has a heavy export output in the first half of fourth quarter,” Cowen analyst Jeffrey Osborne wrote in a Friday note. On top of that, Musk has been preoccupied by his newly acquired social-media platform, leaving some investors to worry that Tesla’s strategy may fall to the wayside. Tesla’s shares have lost nearly half of their value in less than two months as supply-chain snarls mount, raw-material costs soar and potential buyers feel the squeeze of stubborn inflation and rising interest rates. Tesla also initiated a recall of more than 300,000 cars due to faulty taillights. Trader anxiety was higher after a city near Beijing returned to lockdowns, putting both production and sales at risk. Twitter CEO Parag Agrawal did not explain the turnabout beyond saying in a tweet that it was 'for the best,' and that 'there will be distractions ahead.The electric-vehicle maker’s stock dropped 6.8% at $167.87 in New York Monday, the lowest since November 2020. The lawsuit is the latest drama involving Twitter and Musk, who, in a dizzying reversal, said he would not be joining Twitter's board less than a week after he said publicly that he was offered a seat. Rasella's suit is seeking unspecified damages. 'Plaintiff and the Class would not have sold Twitter's securities at the price sold, or at all, if they had been aware that the market prices had been artificially and falsely deflated by Defendant's misleading statements,' wrote Manhattan-based lawyer Jeffrey Block, who is representing Rasella.

Musk is the richest person in the world.īut while the moves may have been a moneymaker for Musk on paper, Twitter shareholders who sold stock during the time period in question were doing so at a artificially low price, the suit says. Musk 'knew or recklessly disregarded' that he had an obligation to file paperwork with the SEC, according to the suit, which estimates that the delayed filings saved Musk about $143 million, or a tiny fraction of his wealth. Coinbase shares tumble after SEC sues the crypto exhange, Apple's stock slips from record high, Twitter's new CEO begins, JPMorgan CEO Jamie Dimon meets with lawmakers. Musk, according to the suit, 'made materially false and misleading statements and omissions by failing to disclose to investors that he had acquired a 5% ownership stake in Twitter as required.' Musk owns 73,486,938 shares of Twitter, which represents a 9.2 passive stake in the company, according to a Securities and Exchange Commission 13G filing released Monday. In his lawsuit, Rasella said by not giving federal regulators a heads-up that he was gobbling up Twitter stock, Musk was essentially able to buy Twitter stock at a discount. Musk did not return a request for comment. Under securities laws, Musk was supposed to alert the Securities and Exchange Commission within 10 days after purchasing 5% or more of Twitter's stock.īut Musk did not file his SEC paperwork until April 4, or 11 days after he was supposed to, and by that point, Musk had amassed a more than 9% stake in the social media company, becoming its largest shareholder for the price of about $2.6 billion. He argues that because Musk waited days to declare his purchase of Twitter stock, he depressed the share price and ripped off others who sold Twitter stock. Marc Bain Rasella filed the suit in federal court in New York and seeks to represent all investors who sold Twitter stock between March 24 and April 1. Tesla CEO Elon Musk introduces the Cybertruck at Tesla's design studio.Ī Twitter shareholder on Tuesday filed a securities fraud lawsuit against Elon Musk, alleging that the billionaire Tesla CEO's late disclosure of his stake in Twitter cost investors money and saved Musk around $143 million.

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