*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).
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
