Elon Musk settles SEC fraud case – and his Tesla tweets are the big casualtyChris Davies / SlashGear - 1 year ago
  • Elon Musk has settled with the SEC, stepping down as chairman of the Tesla board and paying $20m in penalties – a figure matched by the automaker – though the biggest loss may well be on his Twitter account.
  • Musk’s August 7 tweet suggested that Tesla could go private at $420 per share – “a substantial premium to its trading price at the time,” the SEC pointed out in a statement about the settlement today – and that he had secured funding for the transaction.
  • As the SEC views it, Musk’s twitter account had already been promoted as an official mouthpiece for Tesla.
  • Despite that, though, “Tesla had no disclosure controls or procedures in place to determine whether Musk’s tweets contained information required to be disclosed in Tesla’s SEC filings.