Tesla Fair Fund distributions established to pay ‘harmed’ investors

The U.S. Securities and Exchange Commission said Friday that distributions of the Tesla Fair Fund has been established, to be paid out to “harmed” Tesla Inc. investors. The Fund was established after Tesla and Chief Executive Elon Musk agreed to pay $40 million to settle an SEC suit alleging that Musk’s tweet that he had “funding secured” to take Tesla private was false and misleading. The SEC said those who bought Tesla Inc. shares between 12:48 p.m. Eastern on Aug. 7, 2018 and 4:00 p.m. on Aug. 8, 2018 may be eligible for distributions from the Fund. Tesla’s stock sank 6.9% in morning trading, enough to pace the S&P 500’s decliners, after Reuters reported that Musk said Tesla’s workforce needed to be slashed given concerns over a slowing economy.

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