Brian Quinn, a professor at Boston College Law School told Reuters, “Plaintiffs probably think they have a cleaner shot on the merits if the only issues they have to raise are with Elon Musk and Elon Musk’s actions.”
Tesla shares surge, short-sellers suffered huge losses
Separately, Tesla’s stock price climbed 10.3 percent to $640.81 per share on Thursday after reporting strong financial results for the fourth quarter of 2019. Over the past six months, TSLA shares gained
The company’s quarterly earnings were $2.14 per share, higher than the $1.72 per share expected by Wall Street analysts.
In its earnings release, Tesla said 2019 was a turning point citing the fact that the organic demand for its Model was strong. The company added that it “returned to GAAP profitability” in the second half of the year and “generated $1.1 billion of free cash flow for the year. For 2020, the company is expecting its vehicle deliveries to “exceed 500,000 units.”
The company’s solid performance for the quarter resulted in substantial losses for investors who are betting against it. Short-sellers collectively lost more than $1.5 billion, according to data firm S3 Analytics.
