Elon Musk sued for fraud
New York, Sep 28 : The Securities and Exchange Commission (S.E.C.) has filed a lawsuit accusing Tesla Inc. founder Elon Musk of committing fraud by making false public statements with the potential to hurt investors, a move that could force him out of the companys leadership.
The lawsuit filed on Thursday in a federal court here seeks to bar Musk from serving as an executive or director of publicly traded companies like Tesla, reports The New York Times.
Such a punishment is one of the most serious remedies the S.E.C. can impose against a corporate executive. At issue is Musk's declaration on Twitter last month that he had "funding secured" to buy out the stock of the electric-car maker.
The prospect created a firestorm on social media and in the markets that sent Tesla's shares soaring. The case could lead to a re-evaluation of how companies use Twitter to communicate with the investing public.
The S.E.C. said Musk "knew or was reckless in not knowing" that his statements were false or misleading.
"In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source," it said in its lawsuit.
Musk responded later on Thursday, calling the move "unjustified".
"This unjustified action by the S.E.C. leaves me deeply saddened and disappointed. 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," the billionaire businessman said in a statement.
The S.E.C. approached the Tesla chief with an offer to settle the case, an informed source told The New York Times, but he refused to negotiate, adamant that he had done nothing wrong.
Tesla has become the most valuable American carmaker, with its stock worth more than $50 billion. But the company's shares tumbled more than 12 per cent in after-hours trading after the S.E.C. filed its lawsuit.
The lawsuit is the latest in a series of escalating problems for Tesla and Musk. The company has been struggling to achieve the ambitious production targets that Musk had publicly outlined.
He has made a series of unusual public comments or appearances, including an internet interview in which Musk appeared to smoke marijuana.
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Pune accident: Porsche car's registration was pending since March due to non-payment of Rs 1,758 fee
Mumbai, May 21: The permanent registration of the luxury Porsche car involved in the accident in which two IT professionals were fatally knocked down by in Pune city was pending since March due to non-payment of Rs 1,758 fees by the owner, top officials of the Maharashtra transport department said on Tuesday.
The electric luxury sports sedan - Porsche Taycan - was being driven allegedly by a prominent builder's 17-year-old son, who the police claim was drunk at the time of the accident that took place in Kalyani Nagar area in the early hours of Sunday.
Maharashtra Transport Commissioner Vivek Bhimanwar told PTI that the Porsche car was imported in March by a dealer in Bengaluru and from there it was sent to Maharashtra on a temporary registration.
"When it was produced at the Pune Regional Transport Office (RTO), it was found that a certain registration fee was not paid and the owner was asked to pay the amount for completion of the procedure. However, the vehicle was not brought to the RTO for the completion of the registration process after that," he said.
According to officials, road tax is exempted for electric vehicles registered in Maharashtra, and hence for the registration of this Porsche Taycan model, the registration fees that were applicable were only Rs 1,758 with the break-up of Rs 1,500 hypothecation fees, Rs 200 smart card RC fees and Rs 58 postal charges.
Interestingly, as per Porsche India's website, the ex-showroom price of the vehicle manufacturer's various cars starts at Rs 96 lakh and goes over Rs 1.86 crore. Though the price of the Porsche Taycan model is not given on the website, transport department sources said that it could be in crores.
The officials said that as per their records, the vehicle had a valid temporary registration certificate issued by Karnataka with a validity of six months from March to September 2024.
They said that the Porsche dealer in Bengaluru was not at fault as he had handed over the car after doing the temporary registration. Hence, it was the responsibility of the owner to get it registered at the RTO before plying it on the roads. During the temporary registration period, the vehicles can only be used to drive to and from the RTO.
Bhimanwar said that the teenage boy, who was said to be driving the car, will be barred from getting a driving licence until he turns 25 years of age, and the luxury car will also not be allowed to register at any RTO office for 12 months as its existing temporary registration will be cancelled as per the provisions in the Motor Vehicles (MV) Act.
Under the sub-sections of Section 199A (offenses by juveniles) of the MV Act, the transport authorities can take this action.
Bhimanwar said that their department is going to take stringent action in this case and the Pune RTO has been asked to register the police complaint for violation of provisions in the MV Act
"Whatever violations related to the Motor Vehicles Act happened in the issue, those will be registered in the FIR," Bhimanwar said, adding that they will also invoke the procedure for cancellation of the temporary registration of the vehicle as per the provisions in the act.
"The vehicle will be impounded for 12 months," another top official of the transport department said, adding that there is gross negligence in this case as the vehicle was driven at a speed over 160 kmph, allegedly in an inebriated state as per media reports.
The official said that there are several violations in this case, including driving the vehicle without a driving licence and without its registration, among others.
Meanwhile, Maharashtra Deputy Chief Minister and Home Minister Devendra Fadnavis said in a press conference in Pune this evening that the car was purchased in Bengaluru and was brought here.
"As per the primary information, the RTI had carried out its inspection but the tax which was required to be paid was not paid. If there is any violation regarding that, a separate FIR will be registered," he said.
