Tesla’s Elon Musk, SEC settle fraud charges

30 September, 2018, 01:34 | Author: Natasha Holloway
  • Elon Musk smoking weed on

Musk tweeted the information to his 22 million followers without discussing it with Nasdaq, the index on which Tesla stock is traded. He can not seek reelection for three years, according to court filings. "In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source", the SEC said in the complaint filed in federal district court in the Southern District of NY.

On Friday the stock took its biggest loss in nearly five years after regulators moved late Thursday to oust Chairman and CEO Elon Musk, saying his infamous tweet about taking Tesla private last month was securities fraud.

At least five research firms said Musk might have to resign following the SEC lawsuit.

Tesla did not immediately respond to a request for comment.

This is a developing story.

Analysts at the bank said: 'The SEC civil action may lead to Musk's exit from Tesla, either permanently or temporarily, and the Musk premium in the shares dissipating'.

Electric vehicle news site Electrek reported that Tesla had produced 51,000 Model 3s with a couple of days left in the quarter, hitting its goal of 50,000 to 55,000 Model 3s.

Barclays has warned that if Musk is forced to leave, it will send Tesla shares down another $130 - or 48 per cent from their current level.

Fortnite season 6 kicks off with massive changes
The Cram Session mini event is now live and offers plenty of new rewards for players to obtain like XP and Evolution materials. So fans who want to keep in the know will need to keep an eye on the Fortnite Twitter account for the latest information.

Doubts were raised after USA authorities began securities fraud proceedings against the billionaire following his Twitter claims that he had secured funding to take the company private.

The fraud case comes amid a squall of disquieting tweets and other troubling disclosures that have raised questions about whether Musk should remain at the helm of Tesla, a company valued at $46 billion.

Musk and Tesla's many fans had been hoping that a strong quarterly report on Model 3 electric-car deliveries, and the resulting profit, would trump the controversy over Musk's go-private play in August.

Musk's rejection of an SEC settlement infuriated some investors who would have rather put the episode behind them.

At the time of writing, Tesla shares are trading at US$268.20 ($369.55), a significant drop from US$342.54 ($471.99) before this whole affair started. He said the share price is now "more faith-based" than rooted in the company's financial performance.

Tesla's share price has suffered recently given controversy around Musk.

Tesla shares were down 13.9 percent at the close on Friday, at $264.77. The lawsuit also claims he "knew or was reckless in not knowing" that his statements were false and/or misleading.

Recommended:

  • Rosenstein may get to keep his job after all

    Rosenstein may get to keep his job after all

    Rosenstein appointed Mueller in May 2017, oversees his work and has repeatedly defended the breadth and scope of the probe. Barber believes that the upcoming meeting might involve some kind of plea-bargain.
    OPEC raises forecast based on USA  oil production

    OPEC raises forecast based on USA oil production

    USA crude oil production set a new record over the summer producing 10.8 million barrels per day. Saudi Arabia signalled the kingdom is in no rush to bring oil prices down from current levels.
    Michael Kors is close to buying Versace for $2 billion

    Michael Kors is close to buying Versace for $2 billion

    The potential Versace acquisition will bring Michael Kors a step closer to becoming a luxury fashion group. According to the Wall Street Journal, sales for Gucci were up 45 percent in 2017 from 2016.
  • Trump backs embattled court nominee after fiery hearing

    Trump backs embattled court nominee after fiery hearing

    Later, when Mitchell said, "Is that an objection, counsel?" in response to a comment from one of Ford's attorneys, Sen. The office handles hundreds of cases a year from law enforcement agencies in the country's fourth-largest county.
    Jurgen Klopp Laid Down Law For Xherdan Shaqiri - Former Liverpool Defender

    Jurgen Klopp Laid Down Law For Xherdan Shaqiri - Former Liverpool Defender

    It's only because the game is so quick and so intense he needs to get "natural". "We have started to work together 40 days ago". Very amusing ! It's not about the other three competitions tomorrow night. "It's not different between him and other players".
    Leonard jokes at Raptors media day: 'I'm a fun guy'

    Leonard jokes at Raptors media day: 'I'm a fun guy'

    Me, Kyle (Lowry), C.J. "One thing about me is I've always been prepared to come in, work, and try to win a championship". Lowry insisted that it's not a reflection of how he feels about the changes or the Raptors as an organization.
  • EPL: Juventus speak out Pogba's future at Manchester United

    EPL: Juventus speak out Pogba's future at Manchester United

    Mourinho was reportedly furious about the laughing post which is what he confronted Pogba about. Tune in next week to see the latest twist in the Pogba-Mourinho soap opera.

    Trump Defends Kavanaugh But Says He'll Watch Testimony Thursday

    Koegler said that he and Ford had discussed the incident in 2016, but Kavanaugh was not mentioned by name until June of this year. Ford answered both of these questions with a "no" after giving her account of the party where she claims the assault occurred.
    Bellingcat identifies Skripal poisoning suspect as Russian colonel

    Bellingcat identifies Skripal poisoning suspect as Russian colonel

    The Metropolitan Police, who are investigating the poisoning, and the Foreign Office declined to comment on the report. Chepiga was originally identified as "Boshirov" by United Kingdom authorities, who assumed it was a cover name.
  • Trump's Venezuela military option gains backers as millions flee

    Trump's Venezuela military option gains backers as millions flee

    It was the same day Washington slapped sanctions on Maduro's wife and several other high-ranking officials. He is also accused in the assassination of the leader of the Venezuelan opposition Borges.
    Julie Swetnick says Brett Kavanaugh doesn't belong on the Supreme Court

    Julie Swetnick says Brett Kavanaugh doesn't belong on the Supreme Court

    In an interview with MS-NBC Thursday morning, Swetnick said Kavanaugh should not be confirmed as the next Supreme Court justice. Swetnick and her lawyer Michael Avenatti are calling for an FBI investigation into her allegations.
    Laver Cup: Kevin Anderson gains revenge over Novak Djokovic

    Laver Cup: Kevin Anderson gains revenge over Novak Djokovic

    Europe skipper Bjorn Borg meanwhile praised the performance of the World team, who were captained by his old rival John McEnroe. Djokovic, victor of the past two grand slam titles, double-faulted on set point to give the South African the advantage.


Popular

Tesla Model 3 Exploring All Options To Speed Up Deliveries
Long-time Tesla owners want to be part of what they see as a historic moment for the Palo Alto, California-based company. This comes after the intense pressure being placed on Musk to prove that the company can deliver its promises.

Police believe body of missing boy found in Gastonia, North Carolina creek
Both parents went before the media this week to plead for any information that would lead to the discovery of Maddox. The FBI added its Underwater Search and Evidence Response Team to the search Wednesday.

The most memorable moments from Christine Blasey Ford's testimony
Ford said she also sent a tip about Kavanaugh to the Washington Post on July 6, but did not hear back at the time. Trump said in a tweet . "This is a circus". "This confirmation process has become a national disgrace".

Danny Welbeck happy to wait for Premier League start at Arsenal
Danny Welbeck is in contention to start more regularly, according to Arsenal head coach Unai Emery . Danny Welbeck has shown his quality in cup competitions so far this season.

Meghan Markle refuses to "lower herself" to meet with half-sister Samantha
Fans on social media couldn't get enough of Meghan's latest move, calling the 36-year-old royal "humble" and "down to earth". Markle attended the opening of an exhibition titled " Oceania " at the Royal Academy of Arts in London on Tuesday, Sept. 25.

US Will Almost Certainly Miss NAFTA Deadline
He did not rule out the possibility of a deal, but made it clear he had little interest in compromising. It's been great for Canada. "We will put billions and billions of dollars into our Treasury".

Iran’s President Denies Requesting Meeting with Trump
Wednesday's meeting highlighted a rift between the United States and its European allies over the Iran nuclear deal. Trump had called Kim a "rocket man" bent on nuclear destruction in his United Nations speech previous year .

Yale cancels classes to accommodate student protest of Kavanaugh nomination
In their August 27 letter, a bipartisan group of Yale Law School alumni praised Kavanaugh's judgment and thoughtfulness. But she indicated that she couldn't comment on the complaint or an investigation that Yale is conducting on the matter.

Trump's latest tariffs on China begin to bite
The trade-war between the United States and China has been happening for some months, although not in the full swing . Each time the US announces taxes on Chinese imports, China does the same to American products.

Deputy Attorney General Rod Rosenstein Expects to Be Fired
A frantic Monday morning left Rosenstein's future - and that of the Russian Federation investigation - uncertain. Likewise, some of Trump's advisers at Fox News, including Sean Hannity, have warned him it's a trap.