Tesla Shares Dive After SEC Files Fraud Charges Against Musk

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Elon Musk’s lack of self control has finally bought Tesla a real problem. Does Tesla survive without Musk? That’s a harder question to answer than it seems at first blush. The stock price is intimately intertwined with the aura of Elon Musk. Without him, Tesla is just a money losing car company with a growing crowd of competitors.

Here’s a TechCrunch article on the SEC charges:

Tesla  shares dropped more than 13 percent in after-hours trading Thursday after the Securities and Exchange Commission filed securities fraud charges against CEO Elon Musk .

The SEC alleges in a complaint filed against the CEO that Musk lied when he tweeted on August 7 that he had “funding secured” for a private takeover of the company at $420 per share. The SEC complaint, filed in federal district court in the Southern District of New York, said the tweets were “false and misleading.”

Read the rest at TechCrunch

 

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