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Tesla’s Board Backs Musk as SEC Sues, Seeks Ouster Over Tweets

  • Suit sends Tesla shares down 10 percent in pre-market trading
  • SEC wants Musk banned from serving as officer or director
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Bloomberg’s Jamie Butters reports on the SEC claim.(Source: Bloomberg)
Updated on

Tesla Inc.’s board backed embattled Chief Executive Officer Elon Musk after the Securities and Exchange Commission sued the billionaire for his explosive August tweet about a buyout of the electric-car company he founded. The shares fell 10 percent in pre-market trading.

The SEC is seeking unspecified monetary penalties and, more importantly, will ask a judge to bar Musk from serving as an officer or director of a public company, the agency said in a lawsuit filed in New York. Musk misled investors by claiming falsely that he had lined up funding for the transaction, the suit alleged.