Tesla Looking to Dismiss Securities Fraud Lawsuit

Tesla Looking to Dismiss Securities Fraud Lawsuit

It seems as if Tesla is making headlines every day. The company has filed a Motion to Dismiss the suit that alleges the company was involved in securities fraud. A challenge here is the lack of clarity in the message that is coming from the company historically, which is making it difficult and a tricky situation to judge.

If we go back in time, last October, there were multiple lawsuits filed against Tesla seeking classification as a class action suit which allows a mass group of unhappy shareholders if they think that misleading information is being given out to influence their decision in investing in Tesla.

The lawsuit has cited various unnamed sources within Tesla, indicating that a significant chunk of Model 3 was being developed by hand, instead of machine assembly lines. The Model 3 is presumed to be the savior of the company, and the company has been burning cash over the years in coming up with this model. With all this chaos at Tesla, the share price is still rising, giving short sellers a nightmare. This is because even though the fundamentals of the company are in an unfortunate situation, the stock price kept on growing.

Tesla’s stock has not hit the rock-bottom, but it has not helped investors either in generating the kinds of returns that it promised, considering Model 3 to be the breakout car which would turn fortunes of the company.

Anirudh Menon
Anirudh Menon
I have adorned multiple hats during my professional journey. My experience of 14 years comes in areas like Sales, Customer Service and Marketing. My journey as a professional writer started 5 years back, when I started writing for an in-house magazine for my employer. Having successfully delivered many in-house projects, it encouraged me to take my skill to the world. As on day, I have written articles, blogs website content for various industries like Information Technology, Start-up, Retail and Government. The subjects that I have covered range from Digital Marketing, SAP Cloud Platform, Cloud Computing, Content Marketing , Politics. Enhancement is a process and I constantly thrive to add more subjects in my portfolio. Over and above content writing, I also train language and communication to students who want to brush up their speaking skills. I am a part time trainer for IELTS coaching and also work as a budding voice over artist.

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