Musk released his own statement the same day, saying, "This unjustified action by the SEC leaves me deeply saddened and disappointed".
Musk's fortune dropped by $1.5bn on Friday in NY, the day after the Securities and Exchange Commission accused the Tesla CEO of misleading investors with his infamous tweet last month about taking the electric-car maker private. It would have been the largest such transaction of its kind.
Musk published his infamous tweet about taking Tesla private on August 7, briefly sending the company's stock price to a 52-week high before falling after it became clear the board had no information about his plans or funding sources and that the "funding secured" statement was unfounded.
For this reason, we would have assumed a settlement with Musk to punish him financially but keep him as an officer/director would be the best outcome to avoid further damage to shareholders.
The SEC's complaint was filed after Musk and his legal team decided in the last minute that they would fight the charges rather than settle them with the SEC, which had already drafted a settlement agreement, The Wall Street Journal reported, quoting people familiar with the issue.
Carolina Panthers sign safety Eric Reid, known for kneeling during national anthem
I say 'during, ' because it's insane that the narrative changed to we were protesting the anthem, and that wasn't the case. Reid is expected to start right away after the Panthers placed Da'Norris Searcy on injured reserve last week.
For Tesla, the stakes are high.
The civil investigation by the Securities and Exchange Commission resulted in Thursday's steps and Friday's stock skid.
With Tesla's stock now plunging, it turns out Musk may have helped short sellers make a lot of money while putting his job as CEO in serious jeopardy. "The consequences of not settling it are a lot worse, and this is a pretty straightforward case for the SEC".
Given shares are down ~12% in after-market trading, consensus appears to be that Elon will be removed as CEO and chairman and may be removed from the company entirely.
The SEC alleged in the 23-page complaint that Musk made the statements using his mobile phone in the middle of a trading day.
What just happened? Tesla's chief could have skirted the SEC's recently filed lawsuit but reportedly felt that signing a settlement could have blemished his reputation.