Musk Hit With SEC Suit, Tesla Shares Collapse

The U.S. Securities and Exchange Commission (SEC) has announced charges against Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk, alleging fraud when he said he might take the company private and had the funds to do so. Shares dropped 6% on the news.

Musk tweeted that he might take Tesla private, and, additionally, indicated he had access to money to do so. Tesla shares rose, and the action was seen in some corners as self-dealing because of his share ownership.

The suit claims Musk never had the wherewithal to complete the deal.

The SEC wants Musk to be prevented from serving as an officer in a public company.