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US regulators sue Elon Musk for fraud, seek to remove him from Tesla

Updated : September 28, 2018 06:48 AM IST

Musk, 47, is one of the highest-profile tech executives to be accused of fraud by the Securities and Exchange Commission. Losing its public face and guiding force would be a big blow for money-losing Tesla, which has a market value of more than $50 billion.
The SEC's lawsuit, filed in Manhattan federal court, comes less than two months after Musk told his more than 22 million Twitter followers on August 7 that he might take Tesla private at $420 per share, and that there was "funding secured."
In its lawsuit, the SEC said Musk calculated the $420 price per share based on a 20 percent premium over that day’s closing share price and because of the number's slang reference to marijuana.
US regulators sue Elon Musk for fraud, seek to remove him from Tesla
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