By Drew Harwell
The Securities and Exchange Commission sued Tesla chief Elon Musk on Thursday, saying he lied to investors when he claimed he had secured the funding to take the automaker private.
In a complaint filed in Manhattan federal court, federal regulators said “Musk’s false and misleading public statements and omissions caused significant confusion and disruption in the market for Tesla’s stock and resulting harm to investors.”
The charges are a dramatic setback for one of the tech industry’s most prominent and polarizing executives. The stock plunged more than 6 percent in after-hours trading.