Elon Musk has denied claims in a news report that he sexually harassed a flight attendant on a private jet in 2016, calling the accusations “utterly untrue”. SpaceX, the rocket company founded by Musk, paid the female attendant $250,000 (£200,000) in a severance settlement after a sexual misconduct claim against the world’s richest person, according to the news website Business Insider. The attendant was a cabin crew member who was contracted to work for SpaceX’s corporate jet fleet. She accused Musk of exposing his erect penis to her, rubbing her leg without consent and offered to buy her a horse if she performed an erotic massage, according to interviews and documents obtained by Business Insider. Musk, who is worth $212bn and is also CEO of the electric carmaker Tesla, told his 94.1 million Twitter followers that the allegations were “utterly untrue”. The Guardian has not been able to verify the Business Insider account. SpaceX has been approached for comment. Tesla shares dropped 6% Friday after news of the allegations. The alleged incident took place in 2016 and the settlement was agreed in 2018. According to a declaration prepared in support of the claim, the attendant said that after taking the job she was encouraged to train as a masseuse so she could give Musk massages. It was during one of those massages, onboard Musk’s Gulfstream jet, that she was propositioned by the SpaceX chief executive. The attendant, who Insider does not name, told her friend that she was asked to go to Musk’s cabin during a flight to London to give a “full body massage”. Upon entering the room, she found Musk was “completely naked except for a sheet covering the lower half of his body”. The declaration says that during the massage Musk “exposed his genitals” and “touched her and offered to buy her a horse if she would ‘do more’, referring to the performance of sex acts”. The attendant, a horse rider, declined and continued with the massage without any sexual activity. In an interview with Business Insider about the allegations, the attendant’s friend said Musk’s penis was erect when he propositioned her. According to the declaration, after the incident the attendant felt she was being marginalised in her job. She felt “she was being pushed out and punished for refusing to prostitute herself”, says the declaration. The attendant hired a lawyer in 2018 and sent the allegations to SpaceX’s HR department. The complaint was resolved after a session with a mediator attended by Musk, according to Insider. In November of that year, Musk, SpaceX and the attendant entered into a severance agreement that involved a $250,000 payment in exchange for a pledge not to sue over the claims. Responding to Insider’s story, Musk told the news site that there was “a lot more to this story”. He wrote: “If I were inclined to engage in sexual harassment, this is unlikely to be the first time in my entire 30-year career that it comes to light,” adding that the story was a “politically motivated hit piece”. Without referring directly to the article, Musk tweeted on Friday that attacks against him should be “viewed through a political lens” and that he would continue to fight for “your right to free speech”. Musk has agreed to buy Twitter, the social media company with 229 million users, for $44bn but has said the deal is “on hold” until he receives further details of the number of fake and spam accounts on the platform.