SEC Charges Tesla Chief Executive For Making False Public Statements

The SEC filed a Complaint against Tesla Chief Executive Officer Elon Musk for making a series of allegedly false and misleading statements on Twitter about a potential transaction to take the company private.

The Complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Mr. Musk falsely indicated that funding for the "going private" transaction was secured, and that the only uncertainty remaining was obtaining shareholder approval. According to the SEC, the statements caused Tesla's stock prices to increase by over six percent on August 7, and caused significant disruption in the market which harmed investors.

The Complaint charges Mr. Musk with violating the antifraud provisions of the federal securities laws. The SEC is seeking an injunction, disgorgement, civil penalties and a bar prohibiting Mr. Musk from serving as an officer or director of any public traded company.