Finance General News

Tesla share price drops by 12% after Elon Musk is accused of securities fraud

elon musk

On Friday, 28th Septemeber, Tesla share price opened with a 12 percent drop after the investors of the company feared for the future of Tesla. The investors feared that the companies performance would reduce if Elon to be removed as CEO.

Yesterday at the closing bell the electric carmakers share price was $308 and today morning within few movements after the opening bell the share price fell close to $270. This price drop came after Elon Musk was accused by the US regulators of securities fraud.

On Thursday, US Securities and Exchange Commision (SEC) said that it was seeking to remove Elon Musk because of his “false and misleading” tweet about taking Tesla private.

In August, Elon Musk tweeted that he was considering taking the company private and he had secured funding to do so at a price of $420 per share.

Elon has backtracked after that tweet saying that he had been discussing funding to take the company private with the help of a Saudi Arabian sovereign wealth fund. Elon stated that he was very confident that he could secure the funding for that stock price at $420 per share.