SEC Sues Tesla’s Musk for Fraud

The US Securities and Exchange Commission had filed a complaint against Tesla CEO Elon Musk this week for allegedly making “false and misleading tweets” about taking his company private last month.

The US regulator is accusing Musk of fraud and wishes to remove him from his role in Tesla. However, analysts say that the move would deal a big blow to the electric car company since Musk’s leadership has always been key to maintaining its investor’s confidence.

The lawsuit was set in motion by Musk’s tweet last August where he told around 22 million of his followers that he is considering taking Tesla private at $420 per share and funding had already been secured.

Source: Reuters