Elon Musk is at odds with the SEC again. The Securities and Exchange Commission has filed a lawsuit against Tesla’s CEO for failing to properly disclose the ownership of X (formerly Twitter) as required by U.S. federal law. The SEC alleges that the lack of disclosure allowed Musk to acquire shares in the platform at an “artificially low price.”
Incidentally, this is not the first time Elon Musk has clashed with the U.S. Securities and Exchange Commission. A recent clip shared by the account “Elon Clips” that “documents Elon Musk through an original video clip” shared a Lex Fridman podcast dated November 9, 2023. Elon Musk also acknowledged the post by replying, “Yes.” Incident.
vote
What can other companies learn from Musk’s approach?
Elon Musk said in a podcast that he had to pay a fine to the SEC to save Tesla from bankruptcy. This was despite being acquitted in a San Francisco court. “I was acquitted, but the SEC forced me to pay a fine. “In fact, I had secured funding. There was a big trial in San Francisco, a big civil trial. The jury found me not guilty. In a unanimous verdict, the San Francisco jury, I agreed to fine the SEC not because the SEC was wrong. I am our CFO We were told that if the bank had immediately terminated our line of credit at that point, there would never have been a chance for a trial. It’s like asking them to pay you $1,000,000,000,” Musk said on the podcast.
Why Elon Musk and Tesla were fined $20 million by the SEC
Tesla CEO Elon Musk each had to pay a $20 million fine from the SEC. Tesla and Elon Musk were each fined $20 million over tweets sent within an hour of Musk tweeting that he would be taking a break from Twitter for “a few days.” The tweet was in response to a question from a Twitter follower. On August 7, the SEC accused Musk of misleading investors by tweeting that he was considering taking Tesla private at $420 a share and had secured funding. . Regulators argued that the tweet had no basis in fact and that the ensuing market turmoil harmed investors.
Under the settlement, Tesla and Elon Musk each agreed to pay $20 million to the SEC, and Elon Musk agreed to step down as chairman but remain CEO.
