US Regulators Charge Tesla CEO Elon Musk with Fraud

The US Securities and Exchange Commission on Thursday charged Tesla CEO Elon Musk with securities fraud, alleging he misled investors last month in tweets about taking the company private.

Musk tweeted August 7 that he had "funding secured" to privatize the electric automaker at $420 a share, causing a brief spike in Tesla's share price.

The SEC said Musk's statements on Twitter were "false and misleading" and that he had never discussed the plans with company officials or potential funders.

Musk later said he later decided against the plan.

But Musk quickly rejected the SEC's allegations on Thursday, calling the charges baseless and vowing to defend himself.

"This unjustified action by the SEC leaves me deeply saddened and disappointed," Musk said in a statement.

"I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."

Tesla expressed support for Musk on Thursday, saying the company and the board of directors "are fully confident in Elon, his integrity, and his leadership."

The SEC's charges pose a potentially devastating threat to Musk's future as an entrepreneur, as the agency is seeking fines and the return of ill-gotten gains, as well as potentially barring him from ever serving as an officer or board member of a publicly-traded company.