*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).
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
