Tesla shares jump on Model 3 numbers, Musk deal
- by Claude Bryan
- in Markets
- — Oct 1, 2018
In addition to this punishment, Elon Musk and Tesla are required to pay a fine of $20 million each.
But the claim on August 7 that he had the funding to take Tesla private, and a subsequent U-turn, stunned Wall Street and came amid public appearances which saw Musk smoke marijuana live on air and call a British diver in the Thai cave rescue a "pedo".
In emails to Tesla staff, Musk said that if the staff could pull through the pressure on Sunday, the company could be close to achieving an "epic victory" on production goals, CNBC reported.
And while it's bad news for Musk, people on Twitter have been quick to point out how a single tweet lost the world's leading electric vehicle company its visionary chairman.
In order to avoid similar inconvenience in the future, the company will also hire a lawyer that will not only monitor the communication of Musk but also oversee his tweets.
Now, the company has to hire a chairman to replace Musk (something corporate governance experts have suggested for years), along with 2 new independent directors. "The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", said SEC enforcement division co-director Steven Peikin. He'll also not be eligible to be elected into the Chairman position for three years, Time reports.
Unai Emery feels Arsenal players are responding to his tactical methods
It has been a major U-turn on the club's part as Ramsey has been keen to stay and he was being touted as a future Arsenal captain. It was a disappointing end to what has been yet another contract saga at Arsenal as Aaron Ramsey looks set to leave the club.
Last week, the government charged Musk with making "false and misleading statements" to investors on his Twitter account when he said he had secured funding to take the company private.
"The SEC's complaint alleged that, in truth, Musk knew that the potential transaction was uncertain and subject to numerous contingencies".
The SEC alleged in a lawsuit on Thursday that the tweets about financing for a go-private plan he abandoned just weeks later had no basis in fact, and said the market chaos that ensued hurt investors.
Tesla analyst Garrett Nelson of CFRA Research upped his rating on the stock Monday morning to Hold, after downgrading it on Friday to Sell. The SEC claims that Musk's actions caused "significant market disruption".
The Securities and Exchange Commission (SEC) sued the billionaire and all parties reached an agreement on Saturday night. The SEC charges against Musk shaved about $7 billion off Tesla's value.
