«Breaking News» Tesla shares plunge 14% hours after Elon Musk is sued

Tesla shares took a drastic fall of 14 percent Thursday evening, after CEO Elon Musk was accused of securities fraud for tweets about taking Tesla private and sued by the FBI.

In after-hours trading earlier Thursday, the energy storage company shares plunged 11.08 percent at $272.45.

U.S. securities regulators accused Musk of fraud and sought to ban him as an officer of a public company, saying he made a series of 'false and misleading' tweets about potentially taking the electric car company private last month.

In a complaint filed in Manhattan federal court, the SEC said Musk 'knew or was reckless in not knowing' that he was misleading investors on August 7 by telling his more than 22 million Twitter followers that he might take Tesla private at $420 per share, and that there was 'funding secured.'

The complaint also faults subsequent tweets in which Musk said 'investor support is confirmed,' and that a 'special purpose fund' might be created for investors who stick with the Palo Alto, California-based company.

The SEC sued Elon Musk on Thursday, accusing him of securities fraud for making a series of 'false and misleading' tweets about potentially taking the electric car company private 

'Neither celebrity status nor reputation as a technological innovator provides an exemption from federal securities laws,' Stephanie Avakian, co-director of enforcement at the SEC, told a news conference while announcing its charges against Musk.

Musk responded to news of the lawsuit with a statement saying he was 'deeply saddened.'

'This unjustified action by the SEC leaves me deeply saddened and disappointed, ' Musk said. 'I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.'

Thursday's lawsuit makes Musk one of the highest-profile executives to be accused by the SEC of securities fraud.

It also seeks to bar him from running public companies, which would include Tesla, as well as a civil fine.

These are the August 7 tweets that could cost Elon his ability to run a public company

The SEC does not have criminal enforcement power.

The new criminal probe is tandem to a previously reported civil inquiry by securities regulators.

Tesla confirmed to Bloomberg, who broke the story, that they were aware of the situation 

'Last month, following Elon's announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it.

'We have not received a subpoena, a request for testimony, or any other formal process. We respect the DOJ's desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received.'

Musk has long used Twitter to criticize short-sellers betting against his company, and several investor lawsuits have been filed against him and Tesla over the tweets.

On Augus 24, after news of the SEC probe had become known, Musk blogged that Tesla would remain public, citing investor resistance. 

WHAT ARE THE SEC'S RULES AROUND FAIR DISCLOSURE? 

The SEC has certain rules around what companies can and cannot speak about on social media platforms, as part of its fair disclosure rules.

Many believe Musk's tweets were likely to be weighed against the Reed Hastings Rule, which was established in 2012.

The rule was established when Netflix CEO Reed Hastings used his Facebook to post that the streaming service had 'exceeded 1 billion hours for the first time.'

This warranted further investigation by SEC regulators, who later determined that posting material information on social media is allowed.

However, companies must make sure that shareholders are notified that material announcements will be made on social media channels, as well as given proper access to them.

In Musk's case, Tesla has only told investors to monitor the CEO's Twitter feed in a public filing once, back in 2013.

Beyond that, regulators will be working to find out whether Musk's claims were honest.

Musk tweeted that financing had been secured for a take-private deal and that the company had received broad investor support.

If Tesla doesn't have the funding in place, experts say Musk's tweets could amount to market manipulation, since it would be an example of false statements causing the company's shares to skyrocket.

Link hienalouca.com

https://hienalouca.com/2018/09/28/tesla-shares-plunge-14-hours-after-elon-musk-is-sued/
Main photo article Tesla shares took a drastic fall of 14 percent Thursday evening, after CEO Elon Musk was accused of securities fraud for tweets about taking Tesla private and sued by the FBI.
In after-hours trading earlier Thursday, the energy storage company shares plunged 11.08 percent at $272.45.
U.S. s...

It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.

Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.

Dianne Reeves US News HienaLouca





https://i.dailymail.co.uk/i/pix/2018/09/27/21/50BEC9E900000578-6216299-image-a-58_1538081152005.jpg