SEC files complaint against Tesla’s Elon Musk

The SEC is alleging Musk made false and misleading statements about plans to take the company private.

Elon Musk speaking at an event
Elon Musk. –Chris Carlson / AP, File

DETROIT (AP) — U.S. securities regulators have filed a complaint against Tesla CEO Elon Musk alleging that he made false and misleading statements about plans to take the company private in August.

The Securities and Exchange Commission says in the complaint filed Thursday that Musk falsely claimed in an Aug. 7 statement on Twitter that funding was secured to take the company private at $420 per share.

The complaint filed in the U.S. District Court in Manhattan says that Musk had not discussed or confirmed key deal terms including price with any funding source.

The commission is asking the court for an order stopping him from making false and misleading statements along with repayment of any gains as well as civil penalties.

Advertisement

A message was left Thursday seeking comment from Tesla.