It's only been a few days since he announced he wanted to go private, but people don't like the way he's done it
Less than a week after Elon Musk announced on Twitter that he's making Tesla a private company, two lawsuits have been filed against him.
What it means: For one thing, Twitter isn't usually the way you handle this stuff. He literally tweeted: "Am considering taking Tesla private at $420. Funding secured." Which means he's claiming to have found people willing to buy up all the shares in the company at $420 each (twice the value of Apple's shares), and decided to tell the world via his 22.3 million followers.
Usually, you'd make an official filing that you're going private, where you need some kind of proof that you've actually got the money to do it. Musk didn't bother with that step.
Tesla's share price jumped by 13% as a result of the announcement - presumably because enough people believed he meant business and wanted in on a firm which must be valuable if private investors were willing to splash that much cash on it.
But some are more suspicious: they say without any proof that the funding has been secured, there's no reason to believe Musk isn't just saying this to falsely inflate the company's (and his) worth. So they're suing.