ELON MUSK FORCED TO RESIGN AS CEO OF TESLA
Elon Musk fined $20 MILLION by the SEC and RESIGNS as chairman of Tesla after settling claim he misled investors with notorious '$420' tweet stating he was taking the company private
Elon Musk has been fined $20million after settling on fraud charges
The charges relate to series of tweets where he claimed to be taking Tesla public
SEC says the tweets had no basis in fact and caused chaos in the stock market
Elon Musk has been fined $20million and will be forced to resign as chairman of Tesla after reaching a settlement on fraud charges.
Musk was accused of posting 'false and misleading information' to Twitter about taking his company private at $420 a share on August 7.
The acclaimed engineer told his followers he'd secured funding and only needed a shareholder vote to proceed, but this was untrue.
The SEC claims Musk's tweets had no factual basis, and caused chaos in the stock market, which hurt investors.
Musk's tweets saw Tesla's stock jump by more than six per cent on August 7, but the price crashed by more than 13 per cent when the SEC filed its complaint.
The SEC claimed Musk had not lined up backers and he'd predicted the $420-per-share price based on a 20 per cent premium to the previous day's closing rate, because he thought this would be the typical uplift paid by a bidder taking a firm private. This calculation came out at $419.
https://www.dailymail.co.uk/news/article-6222883/Elon-Musk-fined-20million-resign-chairman-Tesla-settling-fraud-charges.html