Elon Musk Pays The Price For His Tweet And It's Not Cheap At All

Do you think that you don't have to worry about consequences for what you do online? Do you think that you can tweet whatever you want and will still be fine? Well, it's probably true for Donal Trump, the President of the US.

However, as the head of Tesla, Elon Musk can just get away that easily.

As the result of Musk's securities fraud, the SEC will received $20 million from Elon Musk; plus, Musk will no longer be Tesla's chairman. With this effective settlement, next time if Musk intends to say anything in public, he may want to think twice.

Problems started from Elon Musk’s tweet posted on August 7 claiming his plan to take Telsa private with $420 a share and secured the same funding. Shareholders approval was all of what he needed.

According to a Reuters report, the US Securities and Exchange Commission - the SEBI of America, considered this tweet false; and the tweet violated SEC strict guidelines about sensitive communication which was relevant to a publicly traded company. The SEC claimed that because of Musk’s unfounded tweet, the subsequent market turmoil negatively affected investors and the overall shareholder value of Telsa badly.

Elon Musk agreed to step down from the Telsa chairman position and pay a $20 million fine for his rash tweet. Another $20 million will be paid by Telsa Inc for part of the fraud settlement too.

According to the arrangement notes, it should be noted that though Elon Musk is not the chairman of Telsa anymore, he is still its CEO. It is kind of queer but with an otherwise crisis for Elon musk himself and Telsa company, that is the only good news.

Under the terms of the fraud agreement approved by the SEC, in the near future, Telsa’s duty is assigning an independent chairman, a board committee and two directors who will effectively handle Elon Musk’s public communications related to Telsa.

How Telsa shareholders respect Elon Musk is remarkable when they did not have him out of the company completely because they know that no Elon Musk, no Telsa. All they want is to impose some restraints on Musk to prevent him from causing self-damages to the company's future.

And as you may see, he was caught using weed via a webcast, accused a British diver of being a paedophile and Musk  seems more and more unhinged.