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Tesla’s Board Backs Musk as SEC Sues, Seeks Ouster Over Tweets
- Suit sends Tesla shares down 10 percent in pre-market trading
- SEC wants Musk banned from serving as officer or director
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Tesla Inc.’s board backed embattled Chief Executive Officer Elon Musk after the Securities and Exchange Commission sued the billionaire for his explosive August tweet about a buyout of the electric-car company he founded. The shares fell 10 percent in pre-market trading.
The SEC is seeking unspecified monetary penalties and, more importantly, will ask a judge to bar Musk from serving as an officer or director of a public company, the agency said in a lawsuit filed in New York. Musk misled investors by claiming falsely that he had lined up funding for the transaction, the suit alleged.