Tesla in Troubled Waters After SEC Lawsuit

Krishna Mali
By: Krishna Mali

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The electric car manufacturing company Tesla found itself mired in a lawsuit filed by the US regulatory body Securities and Exchange Commission (SEC). Elon Musk, CEO of the firm has been accused of fraud and the SEC lawsuit demanded to remove Musk from his position.

The lawsuit further adds that Musk had made dubious and false statements, tantamounting to volatility in the company’s share via his tweets last month.

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“We are concerned that decreased confidence in Tesla on the part of investors may impact the company’s ability to raise capital on amenable terms,” said Ryan Brinkman, Analyst at JP Morgan.

Musk in an official statement has iterated that he has not done anything wrong and Tesla’s board has echoed his opinion.

The ball is now in SEC’s court and what follows next is a matter of anticipation.

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Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.
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