CCTV Script 28/09/18

— This is the script of CNBC's news report for China's CCTV on September 28, 2018, Friday.

What we have to mention is the strike to Tesla's stock caused by SEC sued Musk. Tesla slide slightly at closing overnight, with around 0.665%, while that dived about 12% when SEC announced they will sue Musk in afterhours trading. Let's have a look over this indictment.

The indictment submitted to the court shows the SEC charged Musk with making "false and misleading" statements and failure to properly inform regulators of major corporate events. Before Musk tweeted making Tesla private, SEC was looking into whether Musk and Tesla engaged in misleading investors when they released information, including sales forecasts.

Stephanie Avakian Title: co-director, enforcement, sec

We allege that Musk's statements were false and misleading because they lacked any basis in fact, at the timing he made these statements. musk can not secure funding from the proposed transaction, to the contrary, we alleged that he is not even discussed key deal details including price with any potential source of funding.

Currently, SEC raised 9 charges, including SEC concluded that Musk had never discussed the matter with any potential source of funds and never confirms transaction terms and prices, meanwhile, Musk has yet to make further substantive exchanges with representatives of the Saudi sovereign wealth fund. Additionally, Musk doesn't contact any other potential strategic investors and evaluate their interests to make Tesla private.

What's more, Musk doesn't contact current stockholders to assess whether they have any interest in tesla going private. Other charges includes Musk has never hired any legal or finance consultant to assist in going-private transaction, and he has never knew going-private should get authority from which regulator or if going-private can meet those regulators' requirements etc. and this indictment from the SEC asks to ban Musk from being any listed company's executive or director.

Gene Munster, managing partner of Loup Ventures.

The answer is greater then 50% chance that he gets removed, but I, as an officer still thingk there is a 95% change, he remains in a very important critical leadership role within the company.

Soon later, we saw the statements from Musk, saying those charges are unreasonable and he has never harm his own credit.

He said in the statement that "This unjustified action by the SEC leaves me deeply saddened and disappointed. 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."

But don't forget, Musk is also facing a parallel criminal investigation running by the U.S. department of justice, and that's probably a bigger risk for this tech leader, because once convicted, musk could even face jail time. We'll keep an eye on that for you.