The founder, CEO, and the face of the car-maker Tesla, The Boring Company, SpaceX, and Solar City has given a tweet that costs him $40 million, and a step down as a chairman of the company within 45-days.He is also not permitted to be elected for the post again for three years. The US Securities and Exchange Commission on Saturday said this.
The SEC said that Mask would remain as the chief executive officer of Tesla under a settlement over the tweets those he has posted on Aug 7 regarding taking the company private.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Elon Musk would step down as Tesla chairman for three years and pay a $20 million fine under proposed settlement with the SEC. pic.twitter.com/aJCP3SUDRK
— TODAY (@TODAYshow) October 1, 2018
New Tesla chair must rein in CEO Elon Musk | @Fin24 https://t.co/qNarD9xqpZ pic.twitter.com/zx734QWmLM
— News24 (@News24) October 1, 2018
The SEC charged Tesla the fine of $20 Million failing to disclosure controls and procedures for Musk’s tweets, SEC also said that the company do not had any way to tell whether his tweets contained any information that might be disclosed in the corporate filings or contain any valid or complete information.
Elon Musk has signed a settlement with the SEC over his disastrous “funding secured” tweet, in which he will lose his Tesla chairmanship and pay a $20 million fine https://t.co/MP5ww7nfG3 pic.twitter.com/3j8FKUxBwx
— Gizmodo (@Gizmodo) October 1, 2018
Musk has to sign an agreement to neither admit-or-denied the guilt which means that he has misled his investors using a false statement.
The SEC Just Taught Elon Musk a Costly Lesson to Always Think Before You Speak (or Tweet) https://t.co/cpUzckLCzm #management #startup pic.twitter.com/5Kw6EWgzjz
— Reza Chowdhury (@RezaC1) October 1, 2018
Elon Musk to Twitter 🤣 pic.twitter.com/om2znZ6X6w
— Mëëřå 🇮🇳 #FightCancer (@imeerage) September 30, 2018
The neither admit-or-denied clause means that he cannot claim that he have been innocent in future.
