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Brilliant, brash and volatile, Elon Musk faces new challenge
by Staff Writers
Washington (AFP) Sept 27, 2018

US regulators charge Tesla CEO Elon Musk with fraud
Washington (AFP) Sept 28, 2018 - The US Securities and Exchange Commission on Thursday charged Tesla CEO Elon Musk with securities fraud, alleging he misled investors last month in tweets about taking the company private.

Musk tweeted August 7 that he had "funding secured" to privatize the electric automaker at $420 a share, causing a brief spike in Tesla's share price.

The SEC said Musk's statements on Twitter were "false and misleading" and that he had never discussed the plans with company officials or potential funders.

Musk later said he later decided against the plan.

But Musk quickly rejected the SEC's allegations on Thursday, calling the charges baseless and vowing to defend himself.

"This unjustified action by the SEC leaves me deeply saddened and disappointed," Musk said in a statement.

"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."

Tesla expressed support for Musk on Thursday, saying the company and the board of directors "are fully confident in Elon, his integrity, and his leadership."

The SEC's charges pose a potentially devastating threat to Musk's future as an entrepreneur, as the agency is seeking fines and the return of ill-gotten gains, as well as potentially barring him from ever serving as an officer or board member of a publicly-traded company.

- 'As firm as it gets' -

Stephanie Avakian, the SEC's co-director of enforcement, told reporters that Musk knew his statements lacked any basis in fact.

The Tesla CEO "had not even discussed key deal terms, including price with any potential source of funding," she said at a news conference.

The charges were a fresh blow to the embattled silicon valley entrepreneur and his company, which has been buffeted in recent months, struggling to reach production targets.

Musk has baffled investors with emotional and seemingly erratic media appearances, including one where he appeared to smoke marijuana, and a public battle with a rescuer who helped save a group of boys trapped in a cave in Thailand.

Steven Peikin, SEC co-director of enforcement, told reporters Thursday that Tesla's investor relations department had scrambled to contain the fallout from Musk's tweets, falsely assuring investors the matter was effectively a done deal.

"The investor relations department told analysts that there was a quote firm offer, and that quote -- the offer is as firm as it gets," Peikin said.

Tesla's share price closed up nearly 11 percent the day of the tweet -- which caused the Nasdaq to suspend trading for an hour and a half.

The company's fortunes on Wall Street worsened considerably Thursday, sinking about 10 percent in after-hours trading to $277.50, down 25 percent since the day of the go-private tweet.

He is looking to revolutionize transportation, colonize space and develop implantable brain-computer interfaces.

But along with Elon Musk's grand ambition comes a brash demeanor with little tolerance for criticism.

The founder and chief executive of Tesla and other companies now faces securities fraud charges over a tweet which regulators said misled investors about taking the electric automaker private.

The charges come with Musk facing increased scrutiny over his volatile behavior that has included smoking marijuana during a podcast interview and assailing a Briton involved in the Thailand cave rescue as a "pedo guy."

Musk has built the widely-admired auto-manufacturer with global ambitions Tesla, along with the private space exploration firm SpaceX, the brain-computer interface startup Neuralink and Boring Company -- designed to build tunnels that could transform mass transportation.

This month, SpaceX said it would send Japanese billionaire Yusaku Maezawa to fly around the moon as early as 2023.

But his eccentric behavior has fueled concerns in recent months over his ability to manage his vast empire.

"At times, Musk appears to be working against himself," analyst Gene Munster of Loup Ventures wrote in a research note this month.

Musk has lashed out at analysts during quarterly conference calls as "boring" and criticized the media for scrutinizing his actions.

A week ago, a British caver who helped in the dramatic rescue of 12 boys trapped in Thailand earlier this year sued Tesla founder Elon Musk on Monday for calling him a "pedo guy" and a "child rapist."

The defamation suit filed in Los Angeles by Vernon Unsworth, a Briton involved in several cave rescues, follows a highly public spat between the two after Musk traveled to Thailand and offered to assist in rescue efforts.

- Like Trump? -

Still, the 47-year-old South African-born Musk is recognized as one of the most influential innovators in the United States, and has an estimated net worth of more than $20 billion.

Musk's conduct has drawn comparisons to US President Donald Trump, another prominent figure who has embraced filter-free social media and whose mental stability has been questioned.

And like Trump, Musk has lambasted the media and been picky about appearances, granting a few rare interviews to publications like the Wall Street Journal, while favoring Rolling Stone magazine.

Musk has suggested the skeptical coverage of the company stemmed from the media's dependence on advertising from the oil and conventional car industry. He has discussed creating a website to "rate the core truth of any article" that would be called Pravda.

Regardless of his reputation, Musk, who has frequented the Metropolitan Museum of Art's annual gala among other glitzy appearances, has seen his wealth soar with Tesla after earlier ventures.

After leaving South Africa, Musk, who holds US and Canadian nationalities, completed academic work in Ontario and the University of Pennsylvania.

By 25, he had created Zip2, an online advertising platform, and was a millionaire by age 30 after selling the company to Compaq Computer in 1999.

He followed that with the creation of the online bank, X.com, which was later merged into PayPal and in 2002 bought by eBay for $1.5 billion.

He also manages a foundation focused on education, renewable energy and pediatric health.

Musk has also had a stormy personal life, having been divorced three times -- twice from the same woman -- and has five living sons.


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ROCKET SCIENCE
Japan firm signs with SpaceX for lunar missions
Tokyo (AFP) Sept 26, 2018
A Japanese start-up is to send spacecraft to the moon in a deal signed with Elon Musk's SpaceX, the Tokyo-based firm said Wednesday. Private lunar exploration company ispace said it would blast a lander and rovers towards the moon on a SpaceX rocket on two separate missions. The spaceware will first orbit the moon in mid-2020, followed by a moon landing attempt set for mid-2021. It comes a week after SpaceX confirmed Japanese billionaire Yusaku Maezawa will be the first man to fly around the ... read more

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