Elon Musk’s grip on Tesla loosens

THE brief and bizarre battle between Elon Musk, the face of Tesla, and the Securities and Exchange Commission (SEC), the main regulator of America’s stockmarkets, is over. The agency had filed a civil lawsuit against Mr Musk on September 27th, alleging that he misled shareholders about his plan to take the firm private. The Tesla boss had casually tweeted on August 7th: “Am considering taking Tesla private at $420. Funding secured.”

The resulting surge in Tesla’s share price, and Mr Musk’s oft-stated desire to “burn” the short sellers that have targeted his firm, stoked the SEC’s anger. Its investigation revealed that Mr Musk had indeed reached an oral agreement with a Middle Eastern investor, believed to be Saudi Arabia’s sovereign-wealth fund, to take the firm private but had not agreed on a specific price or got bankers involved to draft the paperwork. Unimpressed, regulators asked the courts to ban the entrepreneur from serving as a director or senior officer at any public company,...

via Business Feeds

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