The decline sent Musk’s net worth down nearly $1.1 billion. He is now worth an estimated $20.1 billion, making him the 47th richest person in the world.
On August 7, Musk, who serves as Tesla’s CEO and chairman, tweeted that he was considering taking the electric carmaker private at a price of $420 per share, a 20% premium. “Funding secured,” he added. The announcement sent Tesla shares up 6% through the close of markets that day.
In reality, according to the SEC filing, “Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source.” The lawsuit seeks significant penalties against Musk, 47, including barring him from serving as an officer or director of a public company, which would presumably include Tesla.
Musk responded to the allegations in an emailed statement. “This unjustified action by the SEC leaves me deeply saddened and disappointed,” he said. “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.”
Thursday’s news comes during an already turbulent year for Musk. On September 17, he was sued for defamation by a British cave explorer involved with this summer’s effort to rescue children trapped in a Thai cave. Musk had insinuated on Twitter, without evidence, that the man was a pedophile. He doubled down on those statements in a series of emails to a BuzzFeed News reporter.
The year started on much firmer ground. In January, Tesla announced a 10-year compensation plan for Musk tied to performance that could yield him more than $50 billion. As of now, he’s unlikely to see much of that stock.
