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The short seller, Andrew Left, sued Tesla and its founder, Elon Musk, accusing the eccentric tech billionaire of trying to "burn" investors with "objectively false tweets".
Thursday's class action lawsuit is the latest in at least seven lawsuits filed since August 7, when Musk said on Twitter that he had secured "secured financing" to buy Tesla at $ 420 per share .
Shares of the electric car maker jumped 11 percent that day to $ 379.57, much to the dismay of the short sellers who were the first to cover after betting that the price would fall.
On August 24, Tesla announced that it would remain public. After more than two weeks of dramatic fluctuations in Tesla's stock price, investors rushed to determine if an agreement was going to happen, damaging the company's critics and cheerleaders.
Tesla shares, which are currently being reviewed by the Securities and Exchange Commission, closed at $ 280.95 on Thursday, down 17.9% from their closing price before Musk's tweet.
"When a CEO talks [about a sale a company]people are listening and they are waiting for the truth, "said Michael Canty, leftist lawyer, at The Post.
A sample of Left's transactions over a 10-day period ending August 17 was seized of the lawsuit, suggesting that the short seller lost about $ 2 million, according to analyst firm S3 Partners.
Tesla representatives did not immediately respond to requests for comment.
Left – whose firm Citron Research has made a fortune by betting on pharmaceutical giant Valeant Pharmaceuticals – insisted in an interview Thursday to say that the trial was not personal.
"I respect Elon Musk as a visionary. This lawsuit only concerns the statements made that day and my losses, "said Left The Post.
This despite the fact that Alan Salzman, one of Tesla's earliest investors, was cited in divorce proceedings last year against the former wife of Left, who is now married to Salzman.
In December, the Post reported that Salzman's contract with former Mrs. Left had revealed that he accused left-wing minor children of renting.
"Tesla investors are finding more ways to stick with short sellers," Left The Post said at the time.
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