Elon Musk hit with SEC complaint alleging he made false statements about taking Tesla private

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Thursday, September 27, 2018
FILE - Elon Musk, CEO of Tesla Motors Inc.
FILE - Elon Musk, CEO of Tesla Motors Inc.

DETROIT -- U.S. securities regulators have filed a complaint against Tesla CEO Elon Musk alleging that he made false and misleading statements about plans to take the company private in August.

On August 7, Musk tweeted, "Am considering taking Tesla private at $420. Funding secured."

The Securities and Exchange Commission says in the complaint filed in the U.S. District Court in Manhattan filed Thursday that Musk's claim was false and that he had not discussed or confirmed key deal terms including price with any funding source.

The commission is asking the court for an order stopping him from making false and misleading statements along with repayment of any gains as well as civil penalties.

Tesla took a small loss during the day and then dropped 6.1 percent in aftermarket trading after the SEC complaint was filed.