SEC opens fraud case against Tesla founder Elon Musk

Published September 27, 2018 8:24pm ET



The federal government filed a fraud claim against Elon Musk on Thursday, alleging the Tesla founder made false and misleading statements on Twitter when he claimed to have secured financial backing to take the electric carmaker private.

Musk either knew the statement was inaccurate or acted recklessly in making it, the Securities and Exchange Commission said in a lawsuit filed in U.S. District Court in Manhattan. The Department of Justice is also investigating the tweet.

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