WASHINGTON: The US Securities and Exchange Commission (SEC) on Thursday accused Tesla CEO Elon Musk of security fraud, claiming that he misguided investors in tweets last month about taking the company private.
On August 7, Elon Musk tweeted that he had “funding secured” to privatize the Tesla at $420 a share.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Musk’s statements on Twitter were “false and misleading”, said the SEC and that he had never discussed the plans with company officials or potential funders.
However, on Thursday, Musk promptly rejected the SC’s allegations, saying that the charges are baseless and vowed to defend self.
Musk in a statement said, “This unjustified action by the SEC leaves me deeply saddened and disappointed.”
While supporting Musk, Tesla said that the company and the BOD (board of directors) are “fully confident in Elon, his leadership, and his integrity.”
Moreover, the SEC’s co-director of enforcement, Stephanie Avakian told that Musk knew his statements lacked any basis in fact.
At a news conference, Stephanie said that the Tesla CEO “had not even discussed key deal terms, including price with any potential source of funding.”
