Tesla To Remove Elon Musk From Ceo Position Due To Fraud

It all started when Elon Musk posted a tweet in the last August. 

Confusing action

Saudi Arabia’s Sovereign Wealth Fund (SEC) is where Elon Musk claimed to find a private investor. The shareholders’ approval is the only problem left to de-list Tesla, Musk said. However, SEC claims that there was no funding.

Writing in their complaint, SEC’s prosecutors declared:

They claimed the information in the tweet posted by Musk is not true.

They supposed Musk either knew or was unconcerned to announce such false and misleading statements because “he did not have an adequate basis in fact for his assertions”.

Childish jokes

Musk stated that he thought when taking companies private transactions, 20 percent a was a standard premium. According to that, he calculated and generate a figure of $420 per share of that day's closing share price. The committee didn't believe him. Musk's explanation could not satisfy them either as his girlfriend at that time would consider the weed reference funny.

Consequence incoming

Knowing SEC’s decision, Musk indicated his displeasure and claimed that the SEC has given him an unreasonable response. Talk to BuzzFeed, Musk said: 

However, the SEC was still not impressed and they quickly pointed out that although Tesla stock rose after the tweet on August 7, the uncertainty and chaos that follow do harm to shareholders.

We don't know if Musk will try and settle or fight this case till the end. Though, it is most likely that the resolution will take a long time. the influence on Tesla stock may not be good. Moreover, it may be time Musk worried about if the board of Tesla is considering replacing him as CEO let alone Boring Company and SpaceX.