Elon Musk, will remain as CEO but relinquish chairman role and pay stiff fine
The SEC settled charges with Tesla over Elon Musk’s bid to take the company private on Saturday.
As part of the settlement, Musk and Tesla will pay $20 million each, and the billionaire will step down as chairman of the board.
This is interesting. Elon’s infamous Twitter usage has kind of got him into this trouble. The one tweet in question was the one where he said he would take Tesla private at around $420 a share.
What are your thoughts? Will this change Tesla for the better? Or will this only complicate things?
So, I’m not super well versed in these matters. Excuse my ignorance in the matter.
This whole thing started from that tweet. Was there any proof that he was serious? They can sue him over a non legally binding tweet? I’m not afraid to admit when I don’t know something, and the fact that they can sue him, or attempt to, over an offhanded tweet seems really weird to me.
as long as he remains CEO, it feels like he hasn’t lost much. I wonder how one sided this decision was, or if it was an agreed thing on everyones part; including Elons.
I’m not exactly sure how these things are determined, but the charges seem to come from misleading shareholders into thinking he had secured funding for a buyout, when he probably didn’t.
This was the original news about it.
Ohh, I get it. Thanks for the explanation!
Yea, the fact that the tweet was not legally binding probably made it worse, not better. I remember when the tweet went out everyone was wondering if it was legal for him to do so, since the number would clearly influence the stock price of his own company (make it go up) without requiring him to follow through (so he could actually just sell everything he already has at $420 / share if he wanted to, or benefit otherwise).