The founder of Tesla, the world’s largest electric car maker, Elon Musk, has been sued for fraud by the US Securities and Exchange Commission.
The SEC has accused Musk of fraud because of his “false and misleading” tweets about potentially taking Tesla private last month.
It would be recalled that Musk has used several tweets to disclose his decision to take Tesla private which means the company will no longer be traded as a public company on the Nasdaq.
While the plan has since collapsed and Musk had rescinded on his decision to take the heavily-indebted electric car company private, there have been series of condemnations and allegations that he had ulterior motives with his ‘hoax’ of delisting his company.
The SEC has also increased the heat on Musk with its plan to not only sue him for fraud but also remove him as the chief executive officer of the company.
Tesla is now valued at $50 billion but could lose more value as the scandal drags with an attendant damage to the image of the company and investor sentiments.
The company’s board has responded claiming that they are “fully confident” in Musk.