Connect with us

Technology

Elon Musk has to pay $20 million to settle with the S.E.C.

Published

on

The SEC doesn't think your jokes are very funny, Elon.
The SEC doesn’t think your jokes are very funny, Elon.

Image: Getty Images for SXSW

Elon Musk’s ill-advised weed humor is going to cost him $20 million dollars and his chairmanship of Tesla, in accordance with a settlement agreement Musk and Tesla made with the the U.S. Securities and Exchange Commission.

Musk accepted the settlement on Saturday, Sept. 29, after initially rejecting a similar but less harsh settlement put forth when the SEC first announced it was suing Musk for fraud (the initial settlement called for a two-year suspension from the chairmanship and a $10 million fine).

The fraud in this case is the initial content of Musk’s tweet, in which he announced that he would take Tesla private when the stock hit $420 and that he had “funding secured” to make that move. 

The tweet, and Musk’s later retraction, had a legitimate market impact as investors panicked over the prospect of Tesla going private.

Https%3a%2f%2fblueprint api production.s3.amazonaws.com%2fuploads%2fvideo uploaders%2fdistribution thumb%2fimage%2f86667%2f8b30d5ce a13d 4983 a159 c9d9405a8247

Continue Reading
Advertisement Find your dream job

Trending