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U.S. regulator sues Musk for fraud, seeks to remove him from Tesla

US Materials 28 September 2018 09:57
The U.S. Securities and Exchange Commission accused Tesla Inc (TSLA.O) Chief Executive Elon Musk of fraud
U.S. regulator sues Musk for fraud, seeks to remove him from Tesla

The U.S. Securities and Exchange Commission accused Tesla Inc (TSLA.O) Chief Executive Elon Musk of fraud and sought to remove him from his role in charge of the electric car company, saying he made a series of “false and misleading” tweets about potentially taking Tesla private last month, Reuters reports.

In a lawsuit, the regulator described Musk surprising members of his own team and investors with a series of tweets, starting with the Aug. 7 announcement that he was thinking of taking Tesla private. Twelve minutes after the first tweet, Tesla’s head of investor relations texted Musk’s chief of staff to ask whether Musk’s announcement was “legit”, the SEC said.

Musk, 47, is the public face of Tesla and losing him would be a big blow for the money-losing car maker which has a market value of more than $50 billion, chiefly because of investors’ belief in Musk’s leadership.

The Department of Justice, which has the authority to press criminal charges, has also questioned the company about Musk’s tweets, the company said this month.

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