The SEC: Elon Musk Is Accused of Securities Fraud

Elon Musk is accused of securities fraud

The words of famous personalities can have a great power of influence. An example of such vivid statements is the tweet of Elon Musk about his thoughts of privatizing Tesla Inc. at $420 per share (the price at that time, August 7, 2018). After his words, the company’s shares skyrocketed by 6%, and the market was destabilized. The Securities and Exchange Commission became interested in the legitimacy of Musk’s statements, and here is the result.

According to an official statement of the SEC, Mask is accused of securities fraud for a series of tweets about the privatization of Tesla. The Commission’s representative Stephanie Avakian commented that “taking care to provide truthful and accurate information is among a CEO’s most critical obligations.” She also added that this standard applies to information in the social networks as well.

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