*By Kavitha Shastry*
Shares of Tesla ($TSLA) dropped more than 10 percent after hours Thursday after the SEC filed securities fraud charges against CEO Elon Musk.
In a complaint filed in federal court in Manhattan, the agency said Musk either "knew or was reckless in not knowing" that a series of statements he made about taking his company private were false or misleading.
Elon Musk responded to the allegations in a statement to Cheddar saying, "This unjustified action by the SEC 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 SEC's charges stemmed from a [tweet](https://twitter.com/elonmusk/status/1026872652290379776) by Musk on August 7 that he had "funding secured" for a deal that would value the company at $72 billion. The post sent shares of the stock surging to 11-month highs, but an admission by Musk a few days later that he hadn't quite sealed a deal with a Saudi sovereign wealth fund ー followed by a [withdrawal](https://www.tesla.com/blog/staying-public) of his plans ー brought shares down as much as 35 percent.
Shortly after the first tweet, the SEC launched a probe into whether civil charges should be filed. In the actual lawsuit the agency is looking to bar Musk from serving as an officer or a director of any public company. The agency may also impose civil penalties and force him to pay back any "ill-gotten" gains he received from the stock's price fluctuations.
The Department of Justice is currently investigating whether to file criminal charges as well.
Apple has rolled out an update to its operating system this week with a feature called Stolen Device Protection. It makes it a lot harder for phone thieves to access key functions and settings, and users are being urged to turn it on immediately.
The U.S. economy grew at an unexpectedly brisk 3.3% annual pace from October through December as Americans showed a continued willingness to spend freely despite high interest rates and frustrating price levels.
Alan Becker, CEO and Investment Adviser Representative at Retirement Solutions Group and RSG Investments, shares his thoughts on the latest GDP data plus why he's not sold cryptocurrency as a long-term asset.
The Biden administration wants to ban another type of bank “junk fee," targeting fees that are typically charged by banks when a transaction is declined in real time.
Al Root, senior writer at Barron’s, breaks down everything expected from Tesla’s earnings report, from Elon Musk’s demands from the board to why the market has been looking for affordable EV options.
Online retailer eBay Inc. will cut about 1,000 jobs, or an estimated 9% of its full-time workforce. The announcement follows similar moves by other tech companies that ramped up hiring during the pandemic while people spent more time and money online.
Tony Drake, CFP at Drake and Associates, LLC shares thoughts on whether the record gains in technology will broaden to other sectors, the risks of the Fed keeping interest rates higher for too long, and the health of the U.S. consumer.
