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Tesla CEO Elon Musk has been charged with securities fraud by the US Securities and Exchange Commission.
The charges stem from a tweet written in August by the 47-year-old billionaire, who detailed plans to take Tesla privately.
"I'm thinking of taking Tesla privately at $ 420. Financing assured, "wrote Musk. According to the SEC's complaint, Musk's tweet caused considerable confusion among investors and "pushed Tesla's share price up by more than 6%," the SEC said in a press release.
The complaint also alleges that Musk's projects were not discussed "with potential financial partners, and that he would have known that the potential transaction was uncertain and subject to many contingencies".
Elon Musk
Kiichiro Sato / AP / REX / Shutterstock
"Executives have positions of trust in our markets and have significant shareholder responsibilities," said SEC co-director Steven Peikin.
"An agent's celebrity status or reputation as a technology innovator does not allow them to take these responsibilities lightly."
Stephanie Avakian, co-director of the SEC Security Division, added, "Taking care to provide accurate and accurate information is one of the CEO's most critical obligations."
"This standard applies with the same force when communications are made via social media or another non-traditional form."
In addition, the SEC's complaint demands that Musk be fired as a CEO in "violation of anti-fraud provisions of federal securities laws and demand a permanent injunction, disgorgement, civil penalties and a public company." "
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The investigation is still ongoing.
Musk addressed the charges in a statement to PEOPLE, "This unjustified SEC action leaves me deeply saddened and disappointed."
"I've always acted in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show that I have never compromised it in any way.
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