Elon Musk is facing strong allegations from the securities watchdog. Photo/File.
The US Securities and Exchange Commission has filed a lawsuit alleging that Tesla chief executive Elon Musk committed securities fraud.
The Securities and Exchange Commission says in the complaint filed Thursday that Musk falsely claimed in an August 7 statement on Twitter that funding was secured to take the company
private at $420 per share.
In the lawsuit filed in the US District Court in Manhattan, the watchdog says that Musk had, in fact, made no such plans.
"In truth and in fact Musk had not even discussed much less confirmed key deal terms, including price, with any potential funding source," it says.
The commission is asking the court for an order stopping him from making false and misleading statements along with repayment of any gains as well as civil penalties.
