[August 15, 2018]

Scott+Scott Attorneys at Law LLP Files Class Action Lawsuit Against Tesla Inc. (TSLA) and Elon Musk on Behalf of Short Sellers and Put Options Investors

Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national securities and consumer rights litigation firm, today announced that it has filed a class action lawsuit (the "Complaint") against Tesla, Inc. ("Tesla" or the "Company") (NASDAQ: TSLA) and its Chief Executive Officer, Elon Musk (collectively, "Defendants").

The action, which was filed today in the U.S. District Court for the Northern District of California, asserts claims under Sections 10(b) and 20 of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§78j(b) and 78t(a), and SEC (News - Alert) Rule 10b-5 promulgated thereunder, 17 C.F.R. §240.10b-5, on behalf of all persons and entities, other than Defendants and their affiliates, who had open short positions or put options for Tesla as of August 7, 2018 or August 8, 2018 (the "Class Period"), and who suffered damages as a rsult of the misconduct alleged in the Complaint (the "Class")

The Complaint alleges that defendant Elon Musk ("Musk") violated the Securities Exchange Act of 1934 by issuing false and misleading statements regarding Musk taking the Company private. In particular, on August 7, 2018, Musk issued a statement via Twitter (News - Alert) that "funding" for the deal to go private had been "secured" ("Funding secured").

In reaction to Musk's Tweet, the price of Tesla stock soared to an intra-day high of $387.46, $45.47 above the previous day's closing price. It then closed at $379.57 on August 7, 2018.

Musk's Tweet, however, was misleading. Moreover, the Tweet injured short-sellers and put options investors who were forced to cover their positions at artificially-inflated prices. The price of Tesla stock remained inflated throughout the next day, August 8, 2018.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from the date of this notice, or October 15, 2018. Any member of the Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Joe Pettigrew of Scott+Scott at (844) 818-6982, or via email at [email protected].

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

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