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.
