SEC Charges Elon Musk (CEO Of TESLA) For Fraud

It’s been a series of mixed emotions this year for Elon Musk and the TESLA team. Today, the tech company faced it’s biggest problem yet as the SEC publicly announced that Elon Musk was charged with fraud. The charge comes from the ruling that Elon violated terms when he misled TESLA shareholders after tweeting about having a large funding to host a corporate buyout of TESLA.

WSJ Excerpt:

[ “The filing by the SEC in federal court in Manhattan threatens to deal a severe blow to the Palo Alto, Calif., electric car maker. Its brand and Mr. Musk are closely intertwined, and analysts have said the company’s roughly $50 billion market value is driven by Wall Street’s appreciation for Mr. Musk’s vision and skill as an innovator.

Tesla wasn’t named in the suit as a defendant, but the SEC is seeking to bar Mr. Musk, Tesla’s largest shareholder and its top executive, from serving as an officer or director of any U.S. public company. Tesla shares, which have been under intense pressure amid questions about the firm’s financial strength and Mr. Musk’s behavior, tumbled 9.9% to $277 in after-hours trading Thursday on Nasdaq. ” ]

What a time! To see social media affecting so many people on various levels is interesting to say the least. Mistakes and mishaps rarely go unnoticed or undone when placed on social media. Moreover, with the Internet relatively still new many laws and agreements will need to be formed to help make citizens understand how serious the penalty of publicly announcing certain topics.

What do you think about this recent charge? Do you think Tesla will be able to weather the storm as he is the largest shareholder of the company? Let us know what you think below!