- The SEC has named Elon Musk in a lawsuit, according to Bloomberg.
- The regulator has been investigating Musk and his company, Tesla, for months.
The SEC has named Elon Musk in a lawsuit, according to Bloomberg.
The suit accuses him of making false or misleading statements about taking Tesla, his electric car company, private for $420 a share, a claim he tweeted to his 22 million followers on August 7th. Shares fell as much as 10% in after hours trading on the news.
The SEC suit claims that Musk’s tweet about taking Tesla private was “false and misleading” and goes on to say that Musk continued to make false and misleading statements on Twitter followers for hours — one of them being:
“Investor support is confirmed. Only reason why this is not certain is this is contingent on a shareholder vote.”
The SEC wants to bar
Reports that the SEC subpoenaed Tesla over the Musk’s tweet surfaced mere days after he tweeted, on August 15th.
Musk also tweeted that he had “funding secured” for such a deal, and that the only step left in the process was getting investor approval.
A few weeks later, though, Tesla announced that it would not go private in a late night Friday press release. Musk explained that funding for the deal had in fact not been secured, and that discussions stalled in their early stages.
“After considering all of these factors, I met with Tesla’s Board of Directors yesterday and let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree,” Musk wrote.