More than $6bn was wiped off the value of Tesla after US regulators accused Elon Musk of lying to investors, sparking fears on Wall Street that the electric carmaker’s maverick chief executive will be forced to step down.
Investors and analysts on Friday reacted with alarm after the Securities and Exchange Commission filed a fraud complaint in federal court alleging Mr Musk had made “false and misleading statements” when he said he had “funding secured” to take the company private at $420 a share in August.
The lawsuit, coming in the wake of a slew of senior executive departures and amid questions over Mr Musk’s recent behaviour, adds to mounting operational concerns at the carmaker, which has struggled to hit production targets for its mass-market Model 3. Tesla will shortly reveal quarterly sales figures that Mr Musk has pledged will finally make the company profitable.