The day starts with the severe blow suffered by Elon Musk, who has been forced to resign from his office as Tesla’s president and pay a fine of $20 million. The result comes just days after the Securities and Exchange Commission (SEC) sued Musk for a tweet published in August.
Specifically, on August 7, Elon Musk published a tweet expressing his interest in the privatization of Tesla at a price of $420 per share, a message that we show you in the picture presented in this article. In other words, the CEO of the company indicated that all shares would be bought at a value far above market value. As expected, Musk’s comment caused Tesla’s actions like foam to rise. Finally, the company continued to be listed on the stock exchange, which was a movement that did not go unnoticed.
Since then, Musk has been under SEC scrutiny, accusing the company’s CEO of fraud. To avoid major problems, Musk has agreed to resign as the company’s CEO for the next three years. In addition, Musk will have to pay a fine of $20 million, an amount that Tesla will also have to pay. According to the SEC, the $40 million will be distributed to the affected investors.
In return, Elon Musk will retain his position as CEO. If no settlement would have been reached, the incident could have gone to court, where the consequences for Tesla and Musk could have been much greater. In particular, the SEC has given Elon Musk 45 days to resign from his office as President of Tesla.
The problems caused by Elon Musk’s use of social networks have been common for some time, so it was only a matter of time before additional action was taken. Under Tesla’s agreement with the SEC, the company must hire an attorney to control Musk’s use of social networking sites.