This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-45672813
The article has changed 6 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Regulators accuse Tesla's Elon Musk of securities fraud | |
(35 minutes later) | |
The Securities and Exchange Commission has filed a lawsuit accusing Tesla boss Elon Musk of securities fraud. | |
The US financial regulator says Mr Musk's claims that he had secured funding to take the electric carmaker private were "false and misleading". | |
They led to confusion in the stock market and harmed investors, according to the complaint. | |
The SEC is seeking to bar Mr Musk from acting as an officer or director of a publicly traded company. | |
It is also seeking financial penalties. | |
Mr Musk startled the business world last month when he took to Twitter to announce that he was considering a plan that would de-list the company from the stock exchange. | |
He wrote he had "funding secured" for the plan, which would value Tesla at $420 per share. | |
The statements "created the misleading impression that taking Tesla private was subject only to Mr Musk choosing to do so and a shareholder vote", according to the SEC complaint. | |
"In truth and in fact Musk had not even discussed much less confirmed key deal terms, including price, with any potential funding source," it says. | "In truth and in fact Musk had not even discussed much less confirmed key deal terms, including price, with any potential funding source," it says. |
The 7 August tweets took even people within the company by surprise. | |
"Was this text legit?" the firm's head of investor relations wrote to Mr Musk's chief of staff, according to the complaint. | |
Weeks later, Mr Musk backed away from the plan, citing investor feedback. | |
Mr Musk is co-founder of Tesla and has served as chief executive since 2008. | |
The lawsuit was filed on Thursday in a federal court in Manhattan. | |
It sent shares of the firm down more than 10% in after-hours trade. |