Elon Musk Is Being Sued For Fraud By The SEC For Making Misleading Statements About Taking Tesla Private

CNBC- Tesla CEO Elon Musk have been sued by the Securities and Exchange Commission for fraud, according to court documents filed Thursday. Sources close to the company told CNBC the company was also expecting to be sued, though Tesla was not named as a defendant in the complaint. Shares of the automaker fell roughly 10 percent in extended trading Thursday. In August, Musk tweeted that he was considering taking Tesla private, adding “funding secured.” The tweet spurred a scandal-ridden fall for Tesla. Musk later explained he had been in discussions with the Saudi Arabian sovereign wealth fund and felt confident the funding would come through at his proposed price of $420 per share. Musk said in an interview with The New York Times that he calculated that take-private price by rounding $1 up from what would have been a 20 percent upside at the time.

“According to Musk, he calculated the $420 price per share based on a 20% premium over that day’s closing share price because he thought 20% was a ‘standard premium’ in going-private transaction,” the SEC alleged in its suit. “This calculation resulted in a price of $419, and Musk stated that he rounded the price up to $420 because he had recently learned about the number’s significance in marijuana culture and thought his girlfriend ‘would find it funny, which admittedly is not a great reason to pick a price.'”

LOLLLLLLLLLLLLLLLLLLLLLLL

So good. So so so so good. Elon Musk’s tweets continue to come back and bite him in the ass big time. First he got sued by the cave diver for calling him a pedophile (multiple times) and now the SEC is suing him for making misleading statements to the public about taking Tesla private. It stems from when Musk was mad and pouty about how people were being mean to him about how much Teslas suck. So he tweeted that he was going to take Tesla private and that funding had been secured. The only problem was that he didn’t have funding secured and he was just recklessly tweeting like a mad man on Ambien because, well, he’s a mad man on Ambien. Turns out the SEC doesn’t like tweets from a mad man on Ambien when the tweets mislead the public. Who knew?

This one is just a bitttttttttttttt more serious than the cave diver suing for defamation. A person’s tweets haven’t come back to haunt them this bad since the days of Adam C. Best. I don’t know much about the SEC but I know enough to know that the SEC doesn’t fuck around. And it’s not like Elon can claim that he didn’t do this. He tweeted it out to his 22.7 million followers. The SEC is gonna dig into his ass and figure out that he had talked to zero people or shareholders about his plans to take Tesla private. That’s a no-no. I don’t know what the punishment is for something like that but it’s not a slap on the wrist.

ANNNNNNNNNND YOURRRRRRRRRRRR DEFENDING CHAMPION FOR DUMBEST GENIUS IN THE WORLDDDDDDDDDDDDDDDDD

ELON MUSK!

You hate to see this