Tesla CEO Elon Musk Charged with fraud by SEC

According to the documents of court by this Thursday, The Securities and Exchange Commission has sued Tesla CEO Elon Musk. According to sources, CNBC got to know that the company was also almost to be sued but Tesla who has been sued, was not listed as a defendant in the case. This is an automaker company whose shares decreased by 13 percent and this fall the company had on the same date when Tesla was sued. According to the statement of SEC, Musk is alleged of misleading and false statements and it failed to inform the regulatory bodies. A press conference was held by SEC this Thursday and the issues regarding this complaint were told there.

If Musk is found guilty, the SEC is trying to bar him to further serve as the director a public limited company. The co-director of the SEC enforcement division had a statement during the press conference. She said that the CEO or the chairperson of any public limited company needs to hold a set of duties and responsibilities towards shareholders. Stephanie Avakian said that the responsibilities include the key responsibility of being careful and honest in decision making and he must be on the side of truth while making any kind of judgments or giving statements. It should be taken in view that whether the statements made by the CEO are made publically or they are just formal like on any sort of social media channel e.g. facebook or twitter.

She said no one is exempted from the federal laws; neither any celebrity nor reputation could save anyone from the laws and regulations.  Musk also had a statement upon this allegation and he called the allegations to be unjustified. He said that he had always been loyal and he never had comprised his honesty and integrity. In a statement to CNBC, Musk said that he is highly disappointed and sad upon these allegations by SEC. He said that he has always used truth and honesty in his doings of business and for his integrity is the key to have success in life. He said that there are facts which will show that he never had compromised with any issue in his business life. There was a tweet by Musk in August when he was considering making Tesla private. He wrote, “Funding secured”. This tweet somehow was a reason of fall of Tesla and the stock of it was observed to be see-sawing for weeks.

 

 

 

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