Tesla shares fell more than 13 percent in after-hours trading on Thursday after the SECURITIES and Exchange Commission filed securities fraud charges against CEO Elon Musk, the New York Times reported.
On August 8, the Wall Street Journal reported that the SEC questioned the factual basis of Musk’s tweet about Tesla going private – obtaining a “funding guarantee.”
The SEC believes Musk may have violated SEC rule 14E-8, which prevents companies from making statements like Musk’s without all the necessary details.
Musk’s tweet about taking Tesla private also didn’t get a warm reception from Tesla’s board or shareholders, which is why the SEC is investigating.
On August 24, Musk retweeted a blog link at 10 p.m. Eastern time announcing that he had abandoned his plans to take Tesla private and that it was still a public company.
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