Elon Musk reportedly walked away from settlement with SEC

Elon Musk reportedly walked away from settlement with SEC

Elon Musk reportedly walked away from settlement with SEC

The SEC on Thursday filed a lawsuit against Musk accusing him of fraud and sought to remove him from his role saying he made a series of "false and misleading" tweets about potentially taking the company private.

General Motors reclaimed its crown as the most valuable American automaker on Friday after Tesla shares plunged more than 13% in the wake of the Securities and Exchange Commission's lawsuit against Elon Musk. The shorts are up $643 million for the year, after being in negative territory before the lawsuit was announced.

Tesla shares dropped 13 percent to $267.38, and have tumbled 29 percent since Musk's August 7 tweet saying he had financing arranged to take the company private at $420 a share.

In an apparent attempt to reassure rattled shareholders, Musk took to social media on Friday, tweeting, "And remember." with the message "Don't panic" in the dashboard of a vehicle headed toward Earth from outer space.

Tesla laid off 9 percent of its workforce this summer and has endured a mass exodus of executives, including heads of engineering, sales, supply-chain management, human resources and finance.

SEC's complaint held that Musk fabricated the August claim, causing Tesla's shares to rise since he had not really confirmed the key terms and conditions of the deal with any potential funder.

Musk said in a blog post he had been approached by the Saudi Arabian sovereign wealth fund multiple times about investing in Tesla, making him confident he would be able to secure the funds needed to take the company private at his price of $420 per share.

The no-compromise stance suggests that the legal case over Musk's considered-but-discarded plan to take Tesla private won't be resolved quickly.

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The world's largest retailer delivered the message in a letter dated September 6 to the office of the U.S. China has said that it will respond with another $60 billion in duties on USA imports.

Musk could face a lifetime ban from running a publicly traded company. That's putting intense pressure on Musk and the board to stop the bleeding.

Musk's charisma and accomplishments as a disrupter of several industries are worth $130 per share - or about $22 billion - to Tesla, Barclays analyst Brian Johnson wrote in a note.

Musk recently smoked a marijuana joint during an interview.

He said: 'This unjustified action by the SEC leaves me deeply saddened and disappointed'. A Tesla bond issue due in 2025 yields more than 8%, against 6% for the average junk bond, reflecting investor concerns about the company. Tesla's board, which includes Musk's brother Kimbal Musk, is closely aligned with the CEO.

"This was clearly a self-inflicted wound and it comes at a time that is critical for Tesla, which doesn't need any more challenges", said Michelle Krebs, senior analyst with researcher Autotrader.

Musk has driven the company to the verge of profitability with a costly ramp-up of production of its Model 3 sedan over the past year.

The Silicon Valley billionaire said overnight he had done nothing wrong and Tesla's board reiterated its support for him. Despite this, we think the company will survive. Tesla is "still a powerful brand on its own", said Karl Brauer, executive publisher of Kelly Blue Book and Autotrader.

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