But Tesla’s stock tumbled more than 14 percent following the SEC lawsuit, reflecting the degree of risk associated with Musk’s leadership of the carmaker. It is unclear why Musk, who rarely backs down from a fight, changed his mind.
The company’s attorneys, Bradley Bondi of Cahill Gordon & Reindel, and Musk’s attorney, Steven Farina of Williams & Connolly, held several late-night calls with the SEC, attempting to resolve the matter, according to a person close to the company but not authorized to speak about the issue publicly.
‘Enforcement 40’ for 2020
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