Elon Musk is in jeopardy of losing control over the electric-car company he founded, with the US Securities and Exchange Commission (SEC) suing the billionaire for his explosive August tweet about taking Tesla Inc private. Moving with unusual speed, the SEC said in a lawsuit filed in New York that Musk misled investors by claiming falsely that he had lined up funding for the transaction. The SEC said it was seeking unspecified monetary penalties and, more important, would request that a judge bars Musk from serving as an officer or director of a public company. For investors already worried about the company's ability to produce cars fast enough to start generating profits, the prospect of losing Musk - a billionaire and serial entrepreneur whose name is synonymous with Tesla - was unnerving. They dumped the stock, driving it down 13% in after-market trading on Thursday to below $270 and deepening a sell-off that began as the go-private gambit quickly unravelled in August. The share...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.