Another hairpin turn for Tesla as stock dives on SEC charge

Elon Musk is being sued by the SEC

Shares of Tesla Inc dived 12 per cent in early trading on Friday after USA regulators accused chief executive Elon Musk of fraud and sought to remove him from his role in charge of the electric auto company.

Tesla Inc's (TSLA.O) Elon Musk could settle with US regulators who have sued to remove him from the electric carmaker's leadership, but he is prepared to fight the securities fraud lawsuit against him in court, sources said on Friday as shares plunged about 14 percent.

The $420 share price Musk set for the take-private deal, SEC investigators said, was itself a weed reference created to impress his then-girlfriend, the synth-pop musician Grimes.

Share value in Tesla is down more than 11.6 percent on the day, trading at $271.75 as of this writing.

Musk and Tesla's many fans had been hoping that a strong quarterly report on Model 3 electric-car deliveries, and the resulting profit, would trump the controversy over Musk's go-private play in August.

The SEC couldn't resist at minimum making an example of Musk. More seriously for Musk, and Tesla, they can ban a director from serving as an officer in a public company - a measure they are pursuing against Musk.

"Musk's statements, disseminated via Twitter, falsely indicated that, should he so choose, it was virtually certain that he could take Tesla private at a purchase price that reflected a substantial premium over Tesla stock's then-current share price, that funding for this multi-billion dollar transaction had been secured, and that the only contingency was a shareholder vote". However, the settlement would have barred Musk as chairman for two years and would require Tesla to appoint two new independent directors, reported CNBC's David Faber, citing sources.

Musk said the SEC's allegations are "unjustified" and that he "never compromised" his integrity.

Danish police operation temporarily shuts major bridges, ferries to Sweden and Germany
Swedish newspaper Aftonbladet , quoting unnamed sources, said the operation was linked to a kidnapping in Denmark. Ferries between the island of Zeland and its neighbours - including Sweden and Germany - were also suspended.

Panthers signing of Eric Reid has many layers
He's a very physical player who has good ball skills and really good playmaking ability. "I know how he is as a talent". The Panthers next play October 7 at home against the New York Giants.

Donald Trump Accuses China of Interfering in American Midterm Elections
H alleged again, "They would like to see me not win because this is the first time ever that they've been confronted on trade". At another point, the president said, "One thing that they are trying to do is convince people to go against Donald Trump ".

Mr. Musk insists he has "always taken action in the best interests of truth, transparency and investors" and that the facts will bear him out.

After the SEC filed its complaint, Tesla and its board of directors issued a statement voicing confidence in Musk's "integrity and leadership".

But Tesla devotees believe he is a visionary and vital to the company's future.

Four early research notes from Wall Street analysts and brokerages all said that Musk might have to resign. "And Elon often operates as if he's above the law", said Gene Munster, a managing partner of the venture-capital firm Loup Ventures.

As it happens, there is also a criminal investigation of Tesla by the Department of Justice.

If the company stays public, however, Musk could be forced to take a back seat role or exit the company entirely. Tesla's board backed Musk, saying that it is "fully confident" in him.

The company has projected profitability under generally accepted accounting principles in the second half of 2018, but some analysts think it will have to raise cash in coming months.

Related news:

Hot News

isis-killer-beheading-video-story-top Jose Mourinho Odds On To Leave Manchester United Before Paul Pogba
Sep 29, 2018 - 21:51
However, his relationship with his manager Jose Mourinho has spiraled out of control of late. Loud criticism, loud instruction, happens every day.

isis-killer-beheading-video-story-top EUROPEAN UNION: EU, Iran agree on new payment system
Sep 29, 2018 - 21:51
Most concluded that their involvement was far too risky, certainly relative to their links to the world's biggest economy. The EU issued a "blocking statute" to protect European businesses from the impact of the sanctions.

isis-killer-beheading-video-story-top F-35 military plane crash reported in Beaufort County, South Carolina
Sep 29, 2018 - 21:50
Marine pilot safely ejected from the single-seat aircraft and is now being evaluated by medical personnel", said the statmement. The Marine Corps Air Station Beaufort is asking the public to avoid the area of the crash while the investigation continues.

isis-killer-beheading-video-story-top Prosecutor Tells GOP She Would Not Charge Kavanaugh
Sep 29, 2018 - 21:49
In the glare of television lights, the a strict five-minute time limit that seemed to get in Mitchell's way repeatedly. STONE: That's Elizabeth Ortiz, a former deputy prosecutor for the county who has known Mitchell for years.

isis-killer-beheading-video-story-top NBC reports there’s a fourth allegation against Kavanaugh - from an anonymous accuser
Sep 29, 2018 - 21:47
Since Ford's allegations , two other women have come forward with their own accusations of sexual misconduct against Kavanaugh. The Senate Judiciary Committee is questioning Supreme Court nominee Brett Kavanaugh after an anonymous letter was sent to Sen.

isis-killer-beheading-video-story-top Trump questions George Washington’s past to defend Kavanaugh
Sep 29, 2018 - 21:44
Trump said that the Kavanaugh situation was "a very, very unsafe standard for our country", as "you are guilty until proven innocent".

isis-killer-beheading-video-story-top Julie Swetnick Claims Brett Kavanaugh Spiked Drinks to Get Girls Drunk
Sep 28, 2018 - 03:25
Dianne Feinstein , D-Calif., said Thursday that women face serious challenges in coming forward with stories of sexual assault. She also claimed that Judge laughed while the assault took place and turned up the music so that no one could hear her crying.

President Trump Accuses China of 'Meddling' in Midterm Elections
Sep 28, 2018 - 02:57
And we are winning and we're winning big. "But beside that, we learned that they are trying to meddle in our elections". Officials say China's cyber-espionage operations targeting USA defence and commerce have been formidable, however.

isis-killer-beheading-video-story-top Kings, Suns Willing to Help Facilitate Jimmy Butler Trade
Sep 28, 2018 - 02:24
That came in a report from Marc Stein of the New York Times in which he cited National Basketball Association sources. Butler was allowed to not participate in media day by Wolves management and ownership reportedly wants him out.

isis-killer-beheading-video-story-top Heads of state 'were laughing with me,' not at me
Sep 28, 2018 - 02:18
US President Trump addresses the 73rd session of the United Nations General Assembly on September 25, 2018 in New York City. Pompeo also spoke at the event hosted by United Against a Nuclear Iran being held to coincide with the UN General Assembly.

isis-killer-beheading-video-story-top Handwritten note on Kavanaugh, Ford hearing room table: 'Good luck, Dr. Ford'
Sep 28, 2018 - 01:13
The affidavit said she has clearances to work with multiple federal agencies, including the Treasury Department. Ford is set to testify before the Senate Judiciary Committee about that allegation on Thursday.

isis-killer-beheading-video-story-top Michael Avenatti denies being fooled by 4Chan over Brett Kavanaugh allegations
Sep 28, 2018 - 00:17
Kavanaugh has also "categorically denied" allegations made by his other two accusers: Christine Blasey Ford and Deborah Ramirez . She says, among others, that Kavanaugh and Judge were present when she was gang raped. "I don't know, frankly", said Avenatti .

Meghan Markle's most stylish hairstyles since joining the royal family
Sep 27, 2018 - 04:23
FROM Hollywood actress, to royalty - the last few years have certainly been a whirlwind for Duchess of Sussex , Meghan Markle .

isis-killer-beheading-video-story-top Oil hits four-year high as OPEC, allies maintain supply cut
Sep 27, 2018 - 04:04
She says the question of how much Trump's administration can control the Iranian oil market is only one part of the equation. The kingdom does expect to pump more in September and increase again in October, he said, without pledging specific volumes.

isis-killer-beheading-video-story-top Storms fester in the Atlantic - including remnants of Hurricane Florence
Sep 27, 2018 - 02:19
A stretch of I-95 closed in the southeastern part of the state around Lumberton after Florence made landfall on September 14. It'll continue to maintain its strength as it just wanders in the Atlantic over the course of the next several days.