Elon Musk just can not catch a break this year. The SEC has decided to charge him with lying and recklessly misleading the public due to a tweet on Twitter. And no, the SEC is not just a college football conference.
The Securities and Exchange Commission (SEC) is seeking the removal of Musk from his role as CEO of Tesla after a tweet in August in which he claimed that he had “funding secured” to take Tesla, a car company, private.
The SEC holds the primary responsibility of enforcing all federal securities laws, proposing them, and regulating them. A lot of their focus leads to the stock market and making sure it is fair for everyone.
This civil lawsuit, which was filed in New York City on Thursday, could lead to tremendous losses for Tesla and the forced removal of Musk from the CEO role.
The SEC claims in their lawsuit against Musk that “he had not discussed, much less confirmed, any key deal terms, including price, with any potential funding source.”
Besides the normal fines that could be imposed, the SEC has asked the federal court to block Musk from being able to run a public company, which could lead to him being removed from Tesla.
Stephanie Avakian, the co-director of SEC’s Division of Enforcement said at a press conference, “We allege that Musk’s statements were false and misleading because they lacked any basis in fact.”
Musk has not had a good year with Tesla or in the public eye. He is currently in another lawsuit against a British diver for libel and slander after Musk called the diver a “pedo” on Twitter. This was after the diver questioned the efforts of Musk during the successful rescue of a Thai boys soccer team in Thailand.
Maybe a good suggestion for a smart man like Musk would be for him to just delete Twitter.