Elon Musk believed he had verbal agreement with Saudis for Tesla buyout

Tesla CEO views SEC securities-fraud allegation os misleading investors as flawed, according to a person familiar with the matter

Tesla Inc. CEO Elon Musk believes he had a verbal agreement in place with Saudi Arabia’s sovereign-wealth fund to help finance a plan to take the automaker private, according to a person familiar with the matter, a contention that could preview how he will fight regulators’ accusation that he misled shareholders.

Mr. Musk was sued Thursday by the Securities and Exchange Commission, which alleged that he misled investors when he tweeted last month that he had funding secured to lead a Tesla buyout. The agency, which is seeking to oust Mr. Musk from Tesla, said in its complaint that he