*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).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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