SEC sue Musk for fraud, seek to remove him from Tesla

SpaceX founder and chief executive Elon Musk speaks after announcing Japanese billionaire Yusaku Maezawa as the first private passenger on a trip around the moon in Hawthorne Calif. Tesla Inc

SpaceX founder and chief executive Elon Musk speaks after announcing Japanese billionaire Yusaku Maezawa as the first private passenger on a trip around the moon in Hawthorne Calif. Tesla Inc

The US Securities and Exchange Commission on Thursday charged Tesla CEO Elon Musk with securities fraud, alleging he misled investors last month in tweets about taking the company private.

The SEC sent subpoenas to Tesla in August after the sometimes erratic Musk sent a series of tweets Aug. 7 saying he was considering taking the company private at $420 U.S. per share.

The SEC does not have criminal enforcement power.

After Musk said "funding secured" in his now infamous tweet, there was plenty of confusion about which entities had supplied this funding. "Integrity is the most important value in my life and the facts will show I never compromised this in any way".

The SEC said Musk met for less than an hour with three representatives of Public Investment Fund, at the company's Fremont, California, plant on July 31 during which the lead representative for the Saudi Arabian sovereign wealth fund expressed interest in taking Tesla private if the terms were "reasonable", according to the lawsuit.

Tesla was not immediately available for comment.

Chelsea Display Showed Why Fabinho Hasn't Been Starting - Former Liverpool Midfielder
While Liverpool have the upper hand in the league the Carabao Cup match in midweek has given Chelsea the impetus . Not just me, the team did well", Hazard said.

In its complaint, the regulator says Mr Musk made a series of "false and misleading" tweets and he "knew or was reckless in not knowing" that he was misleading investors.

Tesla issued a response from Musk via email. As evidence, the complaint notes that within minutes of the first tweet, the head of investor relations at Tesla texted Musk asking if the tweet was legitimate.

The company's fortunes on Wall Street worsened considerably as of Thursday, sinking about 10 percent in after-hours trading to $$277.50, down 25 percent since the day of the tweet. Six of Tesla's directors released a statement expressing support for Musk and the need to focus on "ensuring Tesla's operational success".

The suit seeks an order from a judge barring Musk from serving as an officer or director of a public company, a request often made in SEC lawsuits, as well as unspecified monetary penalties.

Shares of Tesla are swapping hands at right around $310 this morning.

Recommended News

  • Did an ancient virus ‘infect’ some people with drug addiction?

    Did an ancient virus ‘infect’ some people with drug addiction?

    Future research will determine the impact of HK2 virus and what can be done to alter it for positive results. For the first time, we are able to make a distinction between cause and effect in HERV pathogenicity".
    Panthers sign safety Eric Reid to 1-year deal

    Panthers sign safety Eric Reid to 1-year deal

    The Panthers are in need of help at safety after Da'Norris Searcy was placed on injured reserve due to a concussion. When told after practice Thursday, Hyde responded, "For real?" "It's an awesome opportunity", Reid said .
    How did Rachel Mitchell end up with Christine Blasey Ford’s WhatsApp messages?

    How did Rachel Mitchell end up with Christine Blasey Ford’s WhatsApp messages?

    When called on by Chairman Sen. "I am here today not because I want to be", said Ford in her testimony. Mitchell concluded her interview with questions concerning the proper way to interview trauma victims.
  • China out to meddle in 2018 election

    China out to meddle in 2018 election

    Chinese officials consequently canceled upcoming trade talks between the two countries, as reported by The Wall Street Journal . He said he can't disclose the evidence, but that it will come out, adding that his allegation did not come "out of nowhere".
    With Kavanaugh nomination, Trump faces #MeToo

    With Kavanaugh nomination, Trump faces #MeToo

    Ford, who has accused Kavanaugh of sexually assaulting her at a party in their high school years, is due to testify first. Trump acknowledged that he is sensitive to false allegations because he has been the target of them.
    Tesla building vehicle  carrier trailers amid

    Tesla building vehicle carrier trailers amid "delivery logistics hell"

    Customers in Los Angeles are receiving emails offering to deliver cars directly to their homes and offices for free. With this, the company sends cars to the delivery centres but also delivers them directly to a customer's doorstep.
  • Birds of Prey casts Jurnee Smollet-Bell and Mary Elizabeth Winstead

    Birds of Prey casts Jurnee Smollet-Bell and Mary Elizabeth Winstead

    The film stars Margot Robbie as Harley Quinn , and fans can't wait to see the gorgeous actress suited up in her costume again. In the comics, Helena Bertinelli is the daughter of the Bertinelli Mafia family, one of Gotham's leading crime families.
    Republican governor says Kavanaugh allegations 'sickening,' calls on Senate to postpone vote

    Republican governor says Kavanaugh allegations 'sickening,' calls on Senate to postpone vote

    Avenatti said Wednesday, July 4, 2018, he doesn't owe any money personally and called the court filing "politically motivated". Adult film actress Stormy Daniels, left, stands with her lawyer Michael Avenatti as she speaks outside federal court, in NY .
    7-year-old's rendition of the national anthem will stun you

    7-year-old's rendition of the national anthem will stun you

    Malea Emma has several videos posted on her website, including performances of Aretha Franklin's "Think" and Radiohead's "Creep". She told CBS News that when she grows up, she wants to be "a singer, doctor, actress, violinist".
  • The Fantastic Beasts trailer confirmed a massive character twist

    The Fantastic Beasts trailer confirmed a massive character twist

    The final trailer for the new Fantastic Beasts movie has been released , less than two months before its big screen debut. Other questions Rowling answered were about the difference between an Animagus and a Maledictus .
    Bills trade tackle Marshall Newhouse to the Panthers

    Bills trade tackle Marshall Newhouse to the Panthers

    Tackles Matt Kalil and Daryl Williams are on injured reserve, while guard Trai Turner did not play because of a concussion. He has played in 103 career games with 70 starts, including the first three games of the 2018 season with Buffalo.
    First Look at Tom Hanks as Mister Rogers Released

    First Look at Tom Hanks as Mister Rogers Released

    The film, which hits theaters in October 2019, was originally reported to be tiled "Are You My Friend", but is now untitled. One of the more fascinating elements of Fred Rogers is that he was that guy on television.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.