SEC sues Elon Musk for misleading investors, sending Tesla shares plummeting
The Securities and Exchange Commission on Thursday sued Tesla founder Elon Musk on charges of misleading investors when he suggested he would take his company private, reports Bloomberg.
The SEC is seeking to bar Musk from serving as an officer of a public company. Musk tweeted in August that he had "funding secured" to take Tesla private at $420 per share, which the SEC called a "false and misleading" statement.
"In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source," the lawsuit read. News of the lawsuit sent Tesla shares plummeting 10 percent. The SEC said Musk "did not inform Nasdaq that he intended to make this public announcement, as Nasdaq rules required." Read more at Bloomberg.
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Summer Meza has worked at The Week since 2018, serving as a staff writer, a news writer and currently the deputy editor. As a proud news generalist, she edits everything from political punditry and science news to personal finance advice and film reviews. Summer has previously written for Newsweek and the Seattle Post-Intelligencer, covering national politics, transportation and the cannabis industry.
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