Elon Musk refused to deal with the investigation

Elon Musk refused to deal with the investigation

October 1, 2018 0 By autotimesnews

The head of Tesla Elon MUsk decided to abandon the deal with the US Securities and Exchange Commission, CNBC reported. Earlier, the agency accused the American of fraud and fraud. Under the terms of the deal, Musk had to pay a fine and leave the post of chairman of the company for two years. In addition, this decision involved the appointment of two new independent directors at Tesla.

However, the businessman decided not to sign the agreement. He explained his decision by saying that he must “remain honest to himself.” Also, according to him, such a move “would leave a mark on his reputation.” The Tesla Board of Directors, in turn, supported Elon Musk in this dispute.

The Federal Securities and Exchange Commission of the United States accuses the head of the company of forgery of misleading shareholders. So, in early August, Ilon Mask wrote on his Twitter that he could buy out all of Tesla’s shares and withdraw it from the stock exchange. However, he did not take further steps in this direction. The ministry claims that the businessman did not have sufficient guarantees to make such statements. In addition, Musk could manipulate the price of shares of the company, giving out false information.

“Musk report led to a jump in Tesla stock prices by more than 6% on August 7 and provoked a significant destabilization in the stock market,” the report said.

Tesla Motors suffered a record loss in the second quarter of this year – the net loss of the American manufacturer of electric vehicles exceeded $ 717 million. In the first quarter, the company also suffered losses – $ 709.5 million.

The American company will explain such losses by large investments in new models. Among them, the first place belongs to the Model 3 electric car. In Tesla they assured that this electric car has already started to make a profit.