Elon Musk Goes Up In Smoke
Elon Musk sent out this tweet ?? in August floating the notion he was taking Tesla private, sending their shares soaring 13% that day.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
SEC suit alleges that @elonmusk picked the $420/share price for @tesla b/c he had recently learned about the weed relevance, thought his girlfriend "would find it funny, which admittedly is not a great reason to pick a price."
— Kate Kelly (@katekelly) September 27, 2018
The SEC hit Musk with fines of $40 million, of which $20 million must be paid personally, he also has to resign as the Chairman of his Board for 3 years, but will remain CEO.
THAT was fast: “As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms —including an obligation to oversee Musk’s communications with investors—and both will pay financial penalties,” says SEC
— Dana Hull (@danahull) September 29, 2018
— Tom Gara (@tomgara) September 29, 2018
I still cannot believe Elon Musk didn’t think there would be consequences for saying he had secured funding and was considering taking the company private. Or it was just a fuck-you to push people out of their short position, but, I mean, the SEC does not like this stuff!
— Nicole Cliffe (@Nicole_Cliffe) September 29, 2018
Details of Elon Musk settlement with SEC: pic.twitter.com/v6wy7AptD7
— Jon Erlichman (@JonErlichman) September 29, 2018
Elon Musk paid a bigger fine for using Twitter, than Twitter Inc. has made in net profit in its history. What a time to be alive.
— Greg Wester (@gwestr) September 29, 2018
Musk’s personal fine means his net worth will go from 23.6 billion to $23.58 billion and learned the hard way not to puff and tweet.