Tesla shares tanked a stunning 14% at a certain point in after-hours trading when the US Securities and Exchange Commission confirmed it was filing a lawsuit. In the document, the SEC accuses the Elon Musk company of making “false and misleading” statements (on social media, aka Twitter) about possible plans to take the company private.
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Elon Musk wanted to impress his girlfriend with $420 price to take Tesla private, SEC says <a href="https://t.co/gMKXF3V22x">https://t.co/gMKXF3V22x</a></p>— Bloomberg (@business) <a href="https://twitter.com/business/status/1045583467868753921?ref_src=twsrc%5Etfw">September 28, 2018</a></blockquote>
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The complaint filed by the SEC stated that Mr Musk had “falsely indicated that, should he so choose, it was virtually certain that he could take Tesla private at a purchase price that reflected a substantial premium over Tesla stock’s then-current share price, that funding for this multi-billion dollar transaction had been secured, and that the only contingency was a shareholder vote.”
Related coverage: <a href="https://thegoldwater.com/news/37324-British-Diver-Who-Helped-With-Thai-Cave-Rescue-Sues-Elon-Musk-For-Calling-Him-a-Pedo"> British Diver Who Helped With Thai Cave Rescue Sues Elon Musk For Calling Him a “Pedo”</a>.
It comes after Mr. Musk tweeted on 7 August: “Am considering taking Tesla private at $420. Funding secured.”
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">BREAKING: Tesla shares plunge 6% after SEC charges Elon Musk and Tesla with fraud after "funding secured" tweet <a href="https://t.co/XlXZOknP8B">https://t.co/XlXZOknP8B</a> <a href="https://t.co/0tzh18Q2Ck">pic.twitter.com/0tzh18Q2Ck</a></p>— CNBC Now (@CNBCnow) <a href="https://twitter.com/CNBCnow/status/1045405563721519105?ref_src=twsrc%5Etfw">September 27, 2018</a></blockquote>
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His privatization plans have by now been withdrawn but the action for Tesla stock that day made sure that the short sellers betting against the Silicon Valley CEO lost measurable sums.
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">The SEC and Elon Musk had agreed to a settlement, but Mr. Musk's lawyers pulled back from the deal Thursday <a href="https://t.co/Q5Wu18x7lv">https://t.co/Q5Wu18x7lv</a></p>— The Wall Street Journal (@WSJ) <a href="https://twitter.com/WSJ/status/1045471912095358978?ref_src=twsrc%5Etfw">September 28, 2018</a></blockquote>
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The SEC now states that Mr. Musk’s statements weren’t accurate as he knew “in truth and in fact” that he “had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source.”
Related coverage: <a href="https://thegoldwater.com/news/36430-Marijuana-Tesla-Musk-Takes-A-Puff-And-Shares-Take-A-Hit"> Marijuana Tesla - Musk Takes A Puff And Shares Take A Hit</a>.
In a statement issued by Tesla in response to the news, Mr. Musk claimed that: “This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency, and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”
It has not been a good summer for Mr. Musk. He got caught up in a Twitter war with one of the Thai rescue divers and accused the man of being a ‘pedo’ and tweeted out a Hitler meme making fun of the investors who are shorting his stock. Just two weeks ago, he was caught smoking a joint on camera during a radio interview.
Source:
https://www.cnbc.com/video/2018/09/27/tesla-sec-fraud-elon-musk.html
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