Tesla CEO Elon Musk thinks the fraud case the SEC filed against him on Thursday is flawed, according to a report in the Wall Street Journal citing a person familiar with the matter.

Musk reportedly believes the SEC is wrong to contend that he needed a written agreement and price before sending a tweet on August 7 that said “Am considering taking Tesla private at $420. Funding secured.”

Musk thinks he had a verbal agreement in place with the Saudi sovereign wealth fund, and that verbal agreements are often common when doing business in the Middle East.

The report also says that Musk told several people that he could have used his own stake in SpaceX, the commercial space flight company he founded and that is worth billions of dollars, to lead the take-private.

Read the full report in the Wall Street Journal.

Products You May Like

Articles You May Like

These advisors help their clients tackle this unknown looming cost
Brooklyn Nets CEO David Levy is stepping down after less than two months on the job
Google is getting into banking to take back the business it lost to Amazon
JP Morgan’s top quant says the ‘once in a decade’ rotation into value stocks will continue
China’s exports and imports fell less than expected in October

Leave a Reply

Your email address will not be published. Required fields are marked *