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Elon Musk is being sued by US authorities over his controversial go-private tweet

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Friday, 28 September, 2018, 15:10
Elon Musk is being sued by US authorities over his controversial go-private tweet

The US Securities and Exchange Commission has charged Tesla CEO Elon Musk with securities fraud, alleging he misled investors last month in tweets about taking the company private.

Musk tweeted on 7 August that he had “funding secured” to privatise the electric automaker at $420 a share, causing a brief spike in Tesla’s share price.

The SEC said Musk’s statements on Twitter were “false and misleading” and that he had never discussed the plans with company officials or potential funders.

Musk later said he later decided against the plan.

But Musk quickly rejected the SEC’s allegations, calling the charges baseless and vowing to defend himself.

“This unjustified action by the SEC leaves me deeply saddened and disappointed,” Musk said in a statement.

“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.”