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Today, the U.S. Securities and Exchange Commission sued Tesla CEO Elon Musk for securities fraud as he made “false and misleading statements” to investors on August 2nd. On that day, he Tweeted to his 22-million Twitter followers that he was going to take his publicly traded company “private at $420. Funding secured.” Continue reading for another video and more information.
“Stephanie Avakian, co-director of the SEC’s enforcement division said Musk’s tweet, ‘lacked any basis in fact’ and caused both the stock price and trading volume of Tesla to surge based on false information. The agency is asking the court to bar Musk from serving as an officer or director of a publicly traded company. If granted, Musk would lose his position as CEO of Tesla and his other company, SpaceX,” reports Yahoo News.