Published: Fri, October 05, 2018
Entertaiment | By Kelly Sanders

Judge asks Tesla, SEC to justify settlement of fraud lawsuit


While Musk wanted to fight the SEC, he reportedly had a change of heart when Tesla's stock plummeted almost 14 percent after the lawsuit was announced.

As earlier mentioned in People Matters, the Securities and Exchange Commission (SEC) had charged Musk with misleading investors with tweets on 7th August that said he was considering taking Tesla private at $420 a share and had secured funding. "And the name change is so on point!"

Tesla CEO Elon Musk mocked the Securities and Exchange Commission in a tweet on Thursday.

The SEC's allegation of fraud against Mr Musk related to tweets he posted in August in which he said he was considering taking electronic auto maker Tesla off the stock market and into private ownership. The share price climbed as much as 11pc and by the close of play, Tesla's value had jumped by $6.3bn (£4.9bn) and Mr Musk was $1.2bn richer.

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Nevertheless, Musk doubled down on Thursday after getting questioned by another Twitter user about the tweet.

The SEC had sought to remove Mr Musk from... A Fox Business Network scoop reports that the SEC is looking into mis-statements from Tesla about its Model 3 production goals. Even after being fined $20 million for a single tweet and sued for fraud. he's back. The deal required him to give up the chairman role at the automaker and to pay a US$20 million fine. The SEC declined to comment. However, at the last minute, Musk's lawyer reportedly called the SEC and told them that his client was no longer interested in settling.

"Elon appears to be resistant to signing this agreement" said Gene Munster, a managing partner at venture capital firm Loup Ventures. The SEC initially put forward a proposal that would have enabled Musk to stay on as CEO and step down as chairman for two years.

Musk's sarcastic tweet could cause Nathan to reject the settlement if it gives her reason to believe that he "has no intention or ability to change his conduct", said Erik Gordon, a business professor at the University of MI.

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