The SEC Sues Tesla CEO Elon Musk For Alleged "False and Misleading" Tweet
The Securities and Exchange Commission is suing Tesla CEO Elon Musk for allegedly misleading markets through his August tweet on taking Tesla private. The SEC is asking a federal judge to prevent Musk from serving as an officer or a director of a public company, among other penalties.
According to the SEC, Musk had not even discussed any important deal term (such as price) with any private funding source – an allegation that denounces Musk’s August 7 tweet of “funding secured” at a per-share price of “$420”. Elon Musk however made a U-turn within only a few weeks of posting the tweet: he said that he would like Tesla to remain a public company after considering shareholders’ opinions. Musk also mentioned that his previous tweet on securing funding was based on talks with Saudi Arabia's sovereign wealth fund, which he claimed had nudged him into taking the company private and offered additional investment in Tesla.
Nevertheless, the SEC is in no mood to pardon Musk’s tweet, and alleges that the “$420” per share figure was only inspired by “the number's significance in marijuana culture" and that he thought his girlfriend (musician Grimes) would find it funny. Elon Musk had not consulted with any board member or employee before posting the August 7 tweet, according to the SEC.
Elon Musk said "This unjustified action by the SEC leaves me deeply saddened and disappointed". He added, "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."
But Tesla’s board members seem to be supportive of Elon. They said they are "are fully confident in Elon, his integrity, and his leadership of the company." "Our focus remains on the continued ramp of Model 3 production and delivering for our customers, shareholders and employees," their statement said.
Tesla's stock soared nearly 9% following his August 7 tweet, but has largely declined thereafter. Tesla's stock dropped more than 11% in after-hours trading Thursday.
F sees MACD Histogram crosses below signal line
F saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 04, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for F moved out of overbought territory on August 28, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on F as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 69 cases where F's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 271 cases where F Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. F’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.030) is normal, around the industry mean (4.168). P/E Ratio (14.949) is within average values for comparable stocks, (269.136). F's Projected Growth (PEG Ratio) (14.289) is very high in comparison to the industry average of (1.871). Dividend Yield (0.064) settles around the average of (0.044) among similar stocks. P/S Ratio (0.253) is also within normal values, averaging (31.199).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a manufacturer of automobiles and trucks
Industry MotorVehicles
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