Market Overview

Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Tesla, Inc.


Geller Rudman & Dowd LLP
today announced that a class action has been commenced on behalf of
purchasers of Tesla, Inc. (NASDAQ:TSLA) securities during the period
between August 7, 2018 and August 17, 2018 (the "Class Period"). This
action was filed in the Northern District of California and is captioned Horwitz
v. Tesla, Inc., et al.
, No. 18-cv-5258.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Tesla securities during the Class Period to seek
appointment as lead plaintiff. A lead plaintiff acts on behalf of all
other class members in directing the litigation. The lead plaintiff can
select a law firm of its choice. An investor's ability to share in any
potential future recovery is not dependent upon serving as lead
plaintiff. If you wish to serve as lead plaintiff, you must move the
Court no later than 60 days from August 10, 2018. If you wish to discuss
this action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Darren
of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at You can
view a copy of the complaint as filed at

The complaint charges Tesla and its Chief Executive Officer and Chairman
of the Board, Elon Musk, with violations of the Securities Exchange Act
of 1934. Tesla designs, develops, manufactures and sells electric
vehicles and energy generation and storage systems in the United States
and internationally.

The complaint alleges that during the Class Period, defendants issued
false and misleading statements about the prospects of taking the
Company private in a series of statements by Musk issued on
Specifically, the complaint alleges these statements were false and
misleading because they misrepresented and/or failed to disclose adverse
facts regarding the potential going-private transaction, including that
funding for the transaction was not secured at the time of Musk's
tweets, the Board was not aware of the plan to take Tesla private, and
advisors for such a transaction had not been retained. As a result of
these false statements and/or omissions, Tesla securities traded at
artificially inflated prices during the Class Period.

On August 7, 2018, Musk issued a tweet that stated: "Am considering
taking Tesla private at $420. Funding secured." Later that day, Musk
issued another tweet stating: "Investor support is confirmed. Only
reason why this is not certain is that it's contingent on a shareholder
vote." After these tweets were issued, Tesla's stock price rapidly
increased, reaching an intra-day high of $387.46 per share, $45.47 per
share higher than the previous day's closing price, before closing at
$379.57 per share on August 7, 2018, a one-day increase of $37.58 per

On August 8, 2018, there were reports in the media that the SEC was
making inquiries regarding the veracity of the tweets sent by Musk and
the reason the disclosures were made via a social media posting rather
than a filing with the SEC. On this news, Tesla's stock price declined
$9.23 per share to close at $370.34 per share on August 8, 2018.

On August 13, 2018, Musk tweeted: "I'm excited to work with Silver Lake
and Goldman Sachs as financial advisors, plus Wachtell, Lipton, Rosen &
Katz and Munger, Tolles & Olson as legal advisors, on the proposal to
take Tesla private." On August 14, 2018, Bloomberg reported that
Goldman Sachs and Silver Lake had not officially signed on when Musk
issued his tweet on August 13, 2018.

Then on August 17, 2018, The New York Times published an
interview with Musk in which he described the circumstances leading up
to his tweets, including his high stress level and his use of Ambien to
cope with the stress. On this news, the price of Tesla stock declined
$29.95 per share to close at $305.50 per share on August 17, 2018.

Plaintiff seeks to recover damages on behalf of all purchasers of Tesla
securities during the Class Period (the "Class"). The plaintiff is
represented by Robbins Geller, which has extensive experience in
prosecuting investor class actions including actions involving financial

Robbins Geller is one of the world's leading law firms representing
investors in securities litigation. With 200 lawyers in 10 offices,
Robbins Geller has obtained many of the largest securities class action
recoveries in history. For five consecutive years, ISS Securities Class
Action Services has ranked the Firm in its annual SCAS Top 50 Report as
one of the top law firms in both amount recovered for shareholders and
total number of class action settlements. Robbins Geller attorneys have
helped shape the securities laws and recovered tens of billions of
dollars on behalf of aggrieved victims. Beyond securing financial
recoveries for defrauded investors, Robbins Geller also specializes in
implementing corporate governance reforms, helping to improve the
financial markets for investors worldwide. Please visit
for more information.

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