BREAKING NEWS Redding Police searching for missing 'at-risk' 24-year-old woman Full Story

SEC Sues Elon Musk

The Securities and Exchange Commission has sued Tesla CEO Elon Musk for making "false and misleading" statements to investors.

Posted: Sep 27, 2018 1:49 PM

(CNN Money) -- The Securities and Exchange Commission has sued Tesla CEO Elon Musk for making "false and misleading" statements to investors.

The complaint hinges on a tweet Musk sent on August 7 about taking Tesla private.

"Am considering taking Tesla private at $420," Musk said. "Funding secured."

The SEC said he had not actually secured the funding.

"In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source," the SEC said in its complaint.

Tesla's stock dropped more than 5% in after-hours trading.

On the day of Musk's tweet, Tesla's stock shot up nearly 9%. It has declined substantially since then.

Musk abandoned the plan after less than three weeks. He later said his "funding secured" comment was based on talks with Saudi Arabia's sovereign wealth fund, which he said had urged him to take the company private and offered to increase its investment in Tesla.

Critics said such conversations were a long way from having "funding secured" for taking the company private at a stock price significantly higher than where it was trading.

The Justice Department is also investigating whether comments made by Musk, Tesla said last week. The company said it had received a voluntary request for documents and is cooperating. Tesla said it had not been subpoenaed.

Shareholders have also filed lawsuits charging that Musk made the claim to manipulate the stock price, and several news outlets reported that the Securities and Exchange Commission is looking into the matter.

California Coronavirus Cases

Data is updated nightly.

Cases: 3573549

Reported Deaths: 52491
CountyCasesDeaths
Los Angeles119295421467
Riverside2897733792
San Bernardino2867552940
Orange2614083921
San Diego2606253303
Santa Clara1107551781
Kern103422877
Fresno955481443
Sacramento935281484
Alameda807771242
Ventura77749852
San Joaquin668291126
Contra Costa62720681
Stanislaus56235949
Tulare48013761
Monterey42261328
San Mateo39059515
San Francisco34291422
Santa Barbara32050413
Solano30115164
Merced29147401
Sonoma28193298
Imperial26909635
Kings22082220
Placer19861232
San Luis Obispo19696235
Madera15496214
Santa Cruz14671183
Marin13231197
Yolo12851185
Shasta11017174
Butte10970163
El Dorado9160100
Napa905369
Sutter888097
Yuba577337
San Benito577261
Lassen562419
Tehama508652
Nevada397274
Tuolumne396059
Mendocino381643
Amador346641
Humboldt321033
Lake316441
Glenn223023
Colusa213613
Calaveras191049
Siskiyou176014
Inyo131337
Mono12144
Del Norte10035
Plumas6536
Modoc4564
Mariposa3957
Trinity3705
Sierra1000
Alpine820
Unassigned00
Chico
Partly Cloudy
66° wxIcon
Hi: 72° Lo: 37°
Feels Like: 66°
Oroville
Partly Cloudy
67° wxIcon
Hi: 70° Lo: 49°
Feels Like: 67°
Chico
Partly Cloudy
66° wxIcon
Hi: 67° Lo: 46°
Feels Like: 66°
Red Bluff
Clear
69° wxIcon
Hi: 51° Lo: 16°
Feels Like: 69°
Red Bluff
Partly Cloudy
69° wxIcon
Hi: 72° Lo: 41°
Feels Like: 69°
Chico
Partly Cloudy
66° wxIcon
Hi: 74° Lo: 40°
Feels Like: 66°
Sunshine and 70s for the next few days with a few clouds today the farther south you are located. We cool down this weekend with rain chances. Showers continue into next week.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events