Brakes on Tesla shares as Musk sued for fraud

Tesla's share price has gone into reverse after boss Elon Musk was told he is to be sued over remarks about potentially taking the electric car firm private.
The stock was trading more than 10% lower when America's financial markets opened on Friday for the first time since the US securities and exchange commission (SEC) accused him of fraud.
The share price fall meant more than $5bn had been lost from the electric car company's market value.The billionaire entrepreneur said he was "deeply saddened" the SEC had filed the lawsuit for alleged securities fraud.In its complaint, the regulator says Mr Musk made a series of "false and misleading" tweets and he "knew or was reckless in not knowing" that he was misleading investors.It also seeks to bar him from running public companies, which would include Tesla, as well as impose a fine.Responding to the lawsuit, Mr Musk said: "This unjustified action by the SEC leaves me deeply saddened and disappointed."I have always taken action in the best interests of truth, transparency and investors... and the facts will show I never compromised this in any way."Mr Musk told his 22 million Twitter followers on 7 August that he might take Tesla private at $420 per share and that there was "funding secured".
Am considering taking Tesla private at $420. Funding secured.— Elon Musk (@elonmusk) August 7, 2018
In later tweets, he added that "investor support is confirmed" and a "special purpose fund" might be created for investors who stick with the California-based company.
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