“Tesla CEO Elon Musk has been sued by the Securities and Exchange Commission for fraud, according to court documents filed Thursday,” Sara Salinas reports for CNBC. “Sources close to the company told CNBC the company was also expecting to be sued, though Tesla was not named as a defendant in the complaint.”
“The SEC complaint alleges that Musk issued ‘false and misleading’ statements and failed to properly notify regulators of material company events. The SEC held a press conference Thursday night regarding the complaint,” Salinas reports. “Among other remedies, the SEC is seeking to bar Musk from serving as an officer or director of a publicly traded company if found guilty.”
“In August, Musk tweeted that he was considering taking Tesla private, adding ‘funding secured.’ The tweet spurred a scandal-ridden fall for Tesla and sent the stock see-sawing for weeks,” Salinas reports. “The complaint also alleges Musk tweeted the statement without the input of other Tesla executives.”
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
“Tesla’s board of directors initially formed a special committee to evaluate the take-private proposal, and Musk said he had hired financial advisors to assist with the plans. Musk ultimately called off the privatization plans on Aug. 24,” Salinas reports. “Tesla said earlier this month the Department of Justice was also looking into the Aug. 7 tweet.”
Read more in the full article here.
MacDailyNews Take: So, who has the stronger case against erratic Elon? The U.S. SEC or “pedo guy?” Or are they tied in the slam dunk department?
— CNBC Now (@CNBCnow) September 27, 2018
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