Lawsuit filed against Elon Musk; could be axed as Tesla CEO if found guilty

Tesla’s chief executive officer Elon Musk’s love affair with controversies is not showing any signs of ending. British Cave expert Vernon Unsworth, who helped save 12 children and their football coach from Thailand’s cave, has sued Space X’s owner Elon Musk. Now the U.S. Securities and Exchange Commission (SEC) has accused Tesla’s chief executive Elon Musk of fraud on Thursday. The commission has alleged that Musk has confused investors by tweeting last month to privatize the company. Musk had said that he should raise funds required for private ownership of the company. The commission alleged that Musk had said that he had raised funds at 420 dollars per share to privatize the electric car maker Tesla.
Tesla’s shares rose sharply with this tweet by Musk, the commission said that the statement given on Twitter is misleading, and Musk never had any communication about this with the the company’s officials or potential investors about their plans. Musk later said that he finally decided not to follow his decision.
According to the New York Times, this case was registered on Thursday in the federal court. Under this, the demand for the removal of Musk from the post of CEO of public companies like Tesla has been sought. Musk has dismissed the allegations made by the commission. Musk said in a statement that “this unfair decision of the SEC has caused me great sadness and disappointment.” I have always taken the initiative in the interest of truth, transparency and investor. ”
Tesla has also expressed full support on Musk. If the charges are proved right then there is a danger for the future of Musk. The commission is demanding the penalty and return the wrongly earned profits. It may also ban the services of the officer or board member Musk in the listed company in its SEC exchange. In the commission, Enforcement Co-Director Stephanie Avakian has told that Elon Musk knows this very well that there is no basis for the facts in his statements. This new charge is another major blow to Musk and his company. Tesla is facing difficulties in completing production targets.
According to the media report, on the day of the tweet by Musk, Tesla’s shares rose nearly 11 percent, due to which NASDAQ had to stop trading for about one and a half hours. At the same time, Tesla’s share has dropped 25 percent now. The Department of Justice is also investigating criminal charges in this case.