Tesla shares dropped nearly 10 percent in after-hours trading after the Securities and Exchange Commission filed charges against CEO Elon Musk.
A docket entry in Manhattan federal court shows the SEC has opened a case against Musk. The SEC alleges that Musk lied when he tweeted on August 7 that he had “funding secured” for a takeover of the company at $420 per share.
Tesla has not responded to a request for comment. We will update the article as comments and new information comes in.
In August, Musk sent a tweet that he had secured funding and was considering taking Tesla private. The tweet wasn’t warmly embraced by the Tesla board or many shareholders and it’s what It prompted the SEC to investigate.
Several weeks later the company posted a blog announcing that Tesla will remain a public company.
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