Elon Musk, Tesla CEO, loses more than $1 billion after SEC charges

Elon Musk to name first private passenger to fly around moon live

Janna Herron, USA TODAY
Published 6:05 p.m. ET Sept. 27, 2018 | Updated 3:47 a.m. ET Sept. 28, 2018


Elon Musk introduced the world to Yusaku Maezawa from Japan who will be the first private passenger on SpaceX’s lunar BFR mission.

The value of Elon Musk’s Tesla holdings slid by $1.38 billion in after-hours trading Thursday after the Securities and Exchange Commission charged him with making “false and misleading statements” about having funding secured to take the electric-car company private.

The company’s stock was down to $266.50 per share after hours, falling 13.34 percent from $307.52, where it closed on Thursday. Musk, who holds 33.7 million shares, or almost 20 percent of Tesla’s outstanding stock, saw the value of his holdings drop to $8.991 billion from $10.375 billion at market close.

Musk’s total net worth is estimated at $23.2 billion, according to the Bloomberg Billionaires Index.

Tesla’s total market value lost $9.032 billion in trading after the market closed. Shares had declined less than one percent during Thursday’s regular trading hours before the charges were announced.

In an August 7 tweet during trading hours, Musk said that he was considering taking Tesla private for $420 per share. “Funding secured,” he wrote.

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For the next three hours, he continued to tweet about the possible deal to his 22 million Twitter followers, the government complaint details. Tesla shares increased more than 6 percent in value from the time of Musk’s first tweet to the trading close on August 7, the complaint alleges.

The SEC said in its complaint that Musk allegedly “had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source.”

“Musk knew or was reckless in not knowing that each of these statements was false and/or misleading because he did not have an adequate basis in fact for his assertions,” the SEC complaint alleged.

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