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Elon Musk sued by SEC after tweet about taking Tesla private

4,248 views · Published 28 September 2018 · 1:37 · Indexed 28 September 2026

Channel: FRANCE 24 English · 2018 · News & Politics

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A Tweet with a reference to cannabis that keeps coming back to burn Tesla''s CEO.The Securities and Exchange Commission has asked a federal court to remove Elon Musk from the role, saying he committed securities fraud by making a groundless claim on Twitter in August.SOT Stephanie Avakian - Co-Director SEC Enforcement"Musk''s statements misled members of the investing public to believe that it was virtually certain he could take Tesla private at a price of $420 per share, which was a substantial premium over its share price at that time."They say he arrived at the number 420 because of its "significance in marijuana culture", and it was intended to make his girlfriend laugh.A Saudi investment fund that owns five percent of Tesla had expressed interest in making the company private, but any such plans were scrapped later that month.The US Justice Department has also questioned Tesla about Elon Musk''s tweets.He''s responded by saying he never compromised his integrity.DLS SOT Elon Musk"This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors."The Tweet came as Tesla''s stock was under pressure because of questions about the company''s finances and Elon Musk''s erratic behaviour.The electric car maker has missed several production targets and is burning through cash, meanwhile the CEO has smoked weed on a podcast and repeatedly attacked a British diver who helped rescue children from a cave in Thailand.Tesla''s stock has plummeted by almost a third since the Tweet.

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