musky business
September 27, 2018

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. Summer Meza

September 17, 2018

Tesla founder Elon Musk was hit by a lawsuit Monday, reports BBC, by the British cave diver who he repeatedly called a child abuser.

The diver, Vernon Unsworth, helped rescue the young Thai soccer players who were trapped in a flooded cave in July. He is suing Musk for defamation, seeking financial compensation and an injunction to keep Musk from repeating the claims.

Musk called Unsworth a "pedo" on Twitter after the diver criticized Musk for creating an unnecessary mini submarine to aid in the rescue. Unsworth said the submarine was a "PR stunt" from Musk, and Musk responded by insisting the device would be helpful and suggesting Unsworth was a predator. "We will make [a video] of the mini-sub/pod going all the way to Cave 5 no problemo," Musk wrote in a since-deleted tweet. "Sorry pedo guy, you really did ask for it." The billionaire apologized, but then accused Unsworth of being a "child rapist," saying he moved to Thailand "for a child bride" and writing, "I f--king hope he sues me."

Unsworth is seeking $75,000 and additional "punitive damages" in a California suit, and he plans to file separate charges in London, reports BBC. "Musk's influence and wealth cannot convert his lies into truth or protect him from accountability for his wrongdoing in a court of law," said Lin Wood, Unsworth's attorney. In order to win a defamation case, Unsworth will need to prove that Musk's statements were false and that they caused him intentional material harm. Summer Meza

August 7, 2018

Elon Musk riled up the stock market on Tuesday, tweeting that he was thinking of taking Tesla private at $420 per share, "funding secured."

Shares of the electric car company skyrocketed 7.4 percent as the CEO's message sunk in, CNBC reports. Then trading was brought to a halt.

Tesla's shares had already spiked Tuesday thanks to reports of new investment in the company, per CNBC. The post-tweet frenzy sent shares as high as $371.15, and trading was eventually halted at $367 per share.

Musk soon tweeted again to sort of clear up the situation, saying shareholders could either sell at $420 or hold their shares as Tesla went private. He hopes all current investors stay with Tesla even if it goes private, Musk tweeted, but "will ensure their prosperity in any scenario."

Musk recently hinted at a rejection of Wall Street, saying Tesla "would not be raising equity at any point" during a call to analysts Wednesday, per the Los Angeles Times. Tesla is worth $61 billion, and going private at $420 per share would lock the company's valuation at $71.3 billion. Musk expects the company to be profitable in 2018's third quarter, despite reporting a record loss of $718 million in the second quarter last week. Kathryn Krawczyk

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