*By Conor White*
Shares of Tesla fell as much as 14 percent Friday on the news that the Securities and Exchange Commission has filed a lawsuit against CEO Elon Musk.
The suit, which alleges Musk committed fraud, is the biggest domino to fall in the wake of the Tesla ($TSLA) CEO's now-infamous "funding secured" tweet. After Musk's initial post on Aug. 7, the SEC launched an investigation which lasted under two months. It's a quick turnaround ー and a rare one at that, said Fortune senior writer Jen Wieczner.
"They said it was very clear cut," Wieczner said Friday in an interview on Cheddar. "It's not usually this fast, this was less than a couple months. They usually can take months, even years, for them to come to a conclusion."
Musk was reportedly offered a deal by the SEC, which would've fined the CEO and barred him as chairman for two years. But the deal did not require him to admit any guilt. Musk apparently pulled out of the agreement at the last minute.
In the absence of a deal, SEC action could ultimately remove Musk from the company permanently and prohibit him for life from serving as an executive or director at any public company. The charges also open up Tesla to lawsuits from investors who bought and sold shares based on Musk's tweet.
Wieczner noted this behavior is nothing new for the outspoken chief.
"He doesn't think he did it," she said. "This is sort of classic Musk. We see a lot of ego, we see arrogance, confidence. We've seen that on earnings calls where he'll do what he wants."
"I think Elon is saying, 'I didn't do it, we're going to court.'" Wieczner added.
Wall Street is showing its concern over the investigation, with some analysts believing Musk's departure could cost individual Tesla shares hundreds of dollars.
"I think it's just so tied to his personality that it's really unclear," Wieczner said. "Will investors stick with Tesla if Elon Musk isn't there?"
So far, they don't seem to be ー Friday's drop was the biggest one-day percent loss for Tesla since January 2012.
For full interview [click here](https://cheddar.com/videos/end-of-the-road-for-elon).
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
Seth Schachner breaks down Zootopia 2’s record-smashing debut, holiday box office trends, early 2026 Oscar contenders, and what’s next for Netflix and WBD.
