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Tesla Withdraws Request for Restraining Order against Short Seller

Tesla Withdraws Request for Restraining Order against Short Seller

Elon Musk’s electric car manufacturing company Tesla has decided to withdraw its request for restraining orders against short-seller Randeep Hothi. The company filed for the withdrawal on Friday.

Why did Tesla target Hothi?

Hothi is one of the most vocal Tesla short-sellers around and constantly talks about his short position on the company in his social media accounts. He has previously gone to extreme lengths to prove his points and has even embarked on dangerous missions to collect materials that support his thesis, according to Tesla.

Tesla Withdraws Request for Restraining Order against Short Seller

In April this year, Alameda County Superior Court went ahead and granted a temporary injunction to the company. At the time, the EV manufacturer had filed a complaint in the court and provided evidence that Hothi injured a guard in a hit-and-run accident in February. He was almost about to cause an accident while chasing a Model 3 that was undergoing a test drive on April 16.

Why did Tesla withdraw?

After getting the temporary injunction, Tesla was asked by the court to provide audio as well as video recordings of the two accidents it talked about. The company had already provided a description of events, supporting materials, and even written affidavits by its employees earlier but did not provide the recordings.

Instead, it withdrew the case saying that it considered the new requirements unnecessary. It also wrote in court documents that providing such evidence will be detrimental to the privacy of its employees. It argued that the recorded conversations included private and personal conversations of the employees, and it did not wish to hand it over to the court.

However, the company stood firm on its allegations against Hothi and wrote,

“A restraining order against Mr. Hothi is necessary and appropriate to protect its employees at their workplace.”

The company said that it chose to protect the privacy of its employees. It said that it had to choose between maintaining the privacy of its employees vs. making all their private conversations public. But, now it has decided to ensure their safety “through other means.”

A company spokesperson said that Hothi should now be aware that he is not allowed to enter the company property and said that if he ever attempts to make another move in the future, then he should be ready to face legal action. Hothi’s comments on the matter are awaited, but it is unclear if he will leave his bear case against the automaker.

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Viraj Shah

Viraj loves to write and express his views on anything related to Finance, Crypto, or Fintech. He has been covering Finance & Crypto for more than five years now. He likes Tesla. He also writes on Healthcare, and Technology among other stuff.
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