Elon Musk twice violated court order to prevent Tesla CEO from allegedly using Twitter to manipulate the stock market, documents say got speak the Wall Street newspaper Tuesday.
The Securities and Exchange Commission alleged in a lawsuit that Musk had committed fraud by tweeting about a potential takeover of his company in August 2018. Musk claimed he was considering privatizing the company and had secured funding for the company. make. It was reported at the time that the Saudi sovereign wealth fund was the source of this funding. Musk is the second richest person on the planet, worth $ 156 billion according to Fortune.
I am considering taking Tesla privately at $ 420. Funding assured.
– Elon Musk (@elonmusk) August 7, 2018
Like Musk wrote shortly after in a public blog post:
I left the July 31 meeting with no doubt that a deal with the Saudi sovereign wealth fund could be reached and it was only a matter of moving the process forward. That’s why I said “secured funding” in the August 7 announcement.
Musk and Tesla paid $ 20 million each to settle the SEC lawsuit. In addition to Musk’s resignation as CEO, the deal stipulated that the Tesla leader’s tweets would be reviewed by corporate lawyers before being published.
The SEC warned Tesla in May 2020 that the company had “failed to apply these procedures and controls despite repeated violations by Mr. Musk.” The letter added: “Tesla has abdicated the duties imposed on him by the court order.”