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Filing a lawsuit does not mean you will win. Yes, you can tactically become a shareholder and file suits as some people do all the time. You miss earning you g

Filing a lawsuit does not mean you will win. Yes, you can tactically become a shareholder and file suits as some people do all the time. You miss earning you get hit by a shareholder lawsuit every time. This is not a rare thing, but also does not necessarily imply they have any reasonable claim to any damages. Could be just leeching. The distinction between this and the SEC matter that was settled is that SEC is supposed to care about the integrity of the market at large, not just Tesla, Inc. shareholders doing well at the cost of other players in the market that were misled. That's a much stronger basis to argue for damages.

elicash 7y ago
Maybe I'm being unclear. I'm wondering why we shouldn't care about damages to day traders. Is the suggestion that those types of investors are doing something bad? I don't know anything about investing, but wouldn't they just be people who do quick trades?
- mehrdada 7y ago
  "We" should, and "we" do, through SEC and other regulators or criminal investigation against the executives. That matter, however, is already settled, for better or worse. The suit at hand is on the basis of Tesla, Inc.'s fiduciary duties to its shareholders and it is hard to imagine Tesla did not do well by its shareholders at least taking a ~one-year lens.
  - pm_me_ur_fullz 7y ago
    Shareholder litigation isn't regulatory issue, it is totally separate, has different statutes of limitations and has no bearing on what Elon settled with the feds.
  - cowsandmilk 7y ago
    > Tesla, Inc.'s fiduciary duties to its shareholders and it is hard to imagine Tesla did not do well by its shareholders at least taking a ~one-year lens. Tesla's stock went down below 200 in May of 2019, well after the tweet and skyrocketed after that. The long term performance of Tesla stock is not the result of that tweet in August of 2018 and that tweet was not representative of creation of long term value. If Musk hadn't tweeted that day, I would bet long-term performance for Tesla shareholders would have been identical. If Musk actually had funding secured and did take the company private, recent share prices might even indicate that would have been against the long term interests of Tesla shareholders as they were betting on the long-term results of Tesla's investments in manufacturing and would have been deprived of the gains from that bet that they are seeing now.

elicash 7y ago

Maybe I'm being unclear. I'm wondering why we shouldn't care about damages to day traders. Is the suggestion that those types of investors are doing something bad? I don't know anything about investing, but wouldn't they just be people who do quick trades?

mehrdada 7y ago
"We" should, and "we" do, through SEC and other regulators or criminal investigation against the executives. That matter, however, is already settled, for better or worse. The suit at hand is on the basis of Tesla, Inc.'s fiduciary duties to its shareholders and it is hard to imagine Tesla did not do well by its shareholders at least taking a ~one-year lens.
- pm_me_ur_fullz 7y ago
  Shareholder litigation isn't regulatory issue, it is totally separate, has different statutes of limitations and has no bearing on what Elon settled with the feds.
- cowsandmilk 7y ago
  > Tesla, Inc.'s fiduciary duties to its shareholders and it is hard to imagine Tesla did not do well by its shareholders at least taking a ~one-year lens. Tesla's stock went down below 200 in May of 2019, well after the tweet and skyrocketed after that. The long term performance of Tesla stock is not the result of that tweet in August of 2018 and that tweet was not representative of creation of long term value. If Musk hadn't tweeted that day, I would bet long-term performance for Tesla shareholders would have been identical. If Musk actually had funding secured and did take the company private, recent share prices might even indicate that would have been against the long term interests of Tesla shareholders as they were betting on the long-term results of Tesla's investments in manufacturing and would have been deprived of the gains from that bet that they are seeing now.