Tesla (TSLA) shares fell over 12% in after-hours trading following news that the U.S. Securities and Exchange Commission is suing CEO Elon Musk.

The SEC filed a lawsuit Thursday accusing Tesla CEO Elon Musk of defrauding investors following his August 7 “funding secured” tweet, regarding plans to take the company private at $420 per share.

In a company blog post on August 13, Musk explained his assertions were based on multiple encounters where he felt there was:

“no question that a deal with the Saudi sovereign fund could be closed.”

Musk said in a statement Thursday:

“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.”

Do you think Tesla will continue to fall or start to retrace?

Good luck & trade safely.