Elon Musk, Tesla’s chief executive, was accused by federal regulators on Thursday of misleading investors with false public statements, a move that could force him out of the company’s leadership.

At issue is Musk’s declaration on Twitter last month that he had “funding secured” to buy out the stock of the electric-car maker. The prospect created a firestorm on social media and in the markets that sent Tesla’s shares soaring.

In a lawsuit filed in federal court in New York, the Securities and Exchange Commission accused Musk of committing fraud by making false public statements with the potential to hurt investors.

The suit seeks to bar Musk, who is also Tesla’s chairman, from serving as an executive or director of publicly traded companies like Tesla. Such a punishment is one of the most serious remedies the SEC can impose against an executive.

The case is likely to send shock waves across corporate America and could lead to a re-evaluation of how companies use Twitter to communicate with the investing public.

The SEC said Musk “knew or was reckless in not knowing” that his statements were false or misleading. “In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source,” the SEC said in its lawsuit.

In a statement distributed by Tesla, Musk said: “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.”

The SEC approached the Tesla chief with an offer to settle the case, according to a person familiar with his thinking, but he refused to negotiate, adamant that he had done nothing wrong. A person briefed on the talks said they fell apart on Thursday morning, setting the stage for the SEC to vote on the action.

Tesla itself was not named as a defendant.

A Silicon Valley veteran who joined in founding the company 15 years ago, Musk is widely regarded by analysts and investors as the creative engine behind Tesla. It has become the most valuable American carmaker, with its stock worth more than $50 billion.

Twitter has been a frequent outlet for Musk, who posted on August 7 — while he was driving to the airport — that he was “considering taking Tesla private at $420”.