More Elon Musk Twitter fallout: Tesla stock sinks on DOJ reports

More Elon Musk Twitter fallout: Tesla stock sinks on DOJ reports

Tesla CEO Elon Musk tweeted last month that funding was secured to take the company private.

Despite his apology, Musk returned to the topic on August 28, when he tweeted: "You don't think it's unusual [Unsworth] hasn't sued me?"

"We have not received a subpoena, a request for testimony, or any other formal process", Tesla said in their company statement.

The U.S. Securities and Exchange Commission has already opened an inquiry into Musk's tweets. According to sources, this SEC investigation was originally focused on a number of misleading pronouncements from Tesla with regard to their manufacturing goals and sales targets. Shares of Tesla (TSLA) quickly tumbled 6% before recovering somewhat.

Vernon Unsworth, a British diver who helped rescue the 12 young soccer players and their coach that were trapped in a Thailand cave, is suing Elon Musk for defamation following comments made by the entrepreneur earlier this year. "Musk's influence and wealth can not convert his lies into truth or protect him from accountability for his wrongdoing in a court of law", his lawyer Lin Wood, wrote in a statement emailed to ABC News.

Representatives of Tesla Inc., one of Musk's companies, didn't immediately respond to a request for comment from Musk on the allegations.

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Critics said such conversations were a long way from having "funding secured" for taking the company private at a stock price significantly higher than where it was trading.

Last August, Musk tweeted that Unsworth was a "pedo guy."

Tesla's stock dropped more than 4 per cent Tuesday following the news, which Bloomberg first reported.

Musk's maverick image is another factor behind Tesla's fortunes, for good and for ill: His outspokenness, technical acumen and geeky charm have attracted legions of dedicated fans and customers.

The billionaire's behavior has raised concerns about his corporate leadership, and several Wall Street analysts and some investors have urged Tesla to appoint a strong second-in-command.

He has been under intense pressure to prove he can deliver consistent production numbers for the Model 3 sedan, which is crucial to Tesla's plan to become a mass-market automaker.

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