Tesla Shares Dive After SEC Files Fraud Charges Against Musk

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


Previous articleUS Durable Goods Orders Higher On Aircraft Orders
Next articleStocks Are In Correction Mode, But Don’t Blame The Economy