SEC Charges Tesla CEO Elon Musk With Fraud

CHICAGO, IL - JUNE 14: Engineer and tech entrepreneur Elon Musk of The Boring Company listens as Chicago Mayor Rahm Emanuel talks about constructing a high speed transit tunnel at Block 37 during a news conference on June 14, 2018 in Chicago, Illinois. Musk said he could create a 16-passenger vehicle to operate on a high-speed rail system that could get travelers to and from downtown Chicago and O'hare International Airport under twenty minutes, at speeds of over 100 miles per hour. (Photo by Joshua Lott/Getty Images)
CHICAGO, IL - JUNE 14: Engineer and tech entrepreneur Elon Musk of The Boring Company listens as Chicago Mayor Rahm Emanuel talks about constructing a high speed transit tunnel at Block 37 during a news conference on... CHICAGO, IL - JUNE 14: Engineer and tech entrepreneur Elon Musk of The Boring Company listens as Chicago Mayor Rahm Emanuel talks about constructing a high speed transit tunnel at Block 37 during a news conference on June 14, 2018 in Chicago, Illinois. Musk said he could create a 16-passenger vehicle to operate on a high-speed rail system that could get travelers to and from downtown Chicago and O'hare International Airport under twenty minutes, at speeds of over 100 miles per hour. (Photo by Joshua Lott/Getty Images) MORE LESS
|
September 27, 2018 4:38 pm
JOIN TPM FOR JUST $1

DETROIT (AP) — U.S. securities regulators have filed a complaint against Tesla CEO Elon Musk alleging that he made false and misleading statements about plans to take the company private in August.

The Securities and Exchange Commission says in the complaint filed Thursday that Musk falsely claimed in an Aug. 7 statement on Twitter that funding was secured to take the company private at $420 per share.

The complaint filed in the U.S. District Court in Manhattan says that Musk had not discussed or confirmed key deal terms including price with any funding source.

The commission is asking the court for an order that would stop Musk from being “an officer or director” of any public company. The SEC also seeks an order enjoining Musk from making false and misleading statements along with repayment of any gains as well as civil penalties.

A message was left Thursday seeking comment from Tesla.

“Musk made his false and misleading public statements about taking Tesla private using his mobile phone in the middle of the active trading day,” the SEC said in the complaint. “He did not discuss the content of the statements with anyone else prior to publishing them to his over 22 million Twitter followers and anyone else with access to the Internet.”

The statements, the complaint said “were premised on a long series of baseless assumptions and were contrary to facts that Musk knew.”

Shares of Tesla fell 11 percent in after-hours trading to $273.56, after falling 2 percent before the market closed Thursday.

Comments
Masthead Masthead
Editor & Publisher:
Executive Editor:
Managing Editor:
Senior Editor:
Special Projects Editor:
Investigations Desk:
Reporter:
Newswriters:
Front Page Editor:
Editor at Large:
General Manager & General Counsel:
Executive Publisher:
Head of Product:
Director of Technology:
Publishing Associate:
Front-End Developer:
Senior Designer: