Elon Musk’s "Funding Secured" Tweet Just Cost Him & Tesla $40 Million

Elon Musk to Resign as Chair of Tesla Board but Remain CEO

Tesla CEO Elon Musk reaches a settlement with the Securities and Exchange Commission after the agency filed a lawsuit against him; Facebook accounts of 50 million people have been compromised by hackers.

Under the agreement - which Clayton said was "in the best interests of our markets and our investors, including the shareholders of Tesla" - Musk will be ineligible to serve as chairman of the board for a period of three years and will be replaced by an "independent chairman", according to the SEC.

Shares of Tesla Inc jumped almost 15 percent on Monday after Chief Executive Elon Musk settled a lawsuit from the US Securities and Exchange Commission (SEC) that sought to remove him from company management.

According to the SEC's complaint, Musk's misleading tweets caused Tesla's stock price to jump by over six percent on August 7, and led to significant market disruption.

At the same time, Tesla has also settled new charges of "failing to have required disclosure controls and procedures relating to Musk's tweets", and will also pay a penalty of $20m. Tesla shares plummeted 14% on Friday, the biggest drop in nearly five years. He said his outlook for shares is now more positive than it was before the downgrade. Tesla is due to appoint two new independent directors, with the board expected to oversee Musk's communications with investors. He'll also not be eligible to be elected into the Chairman position for three years, Time reports. The SEC said the company had no way to determine if his tweets contained information that must be disclosed in corporate filings, or if they contained complete and accurate information.

But several experienced litigators said on Monday that, while the DOJ probe is separate, the SEC's settlement could mark the end of official action against Tesla and Musk. Some analysts had said that Musk's departure would harm Tesla's brand, fundraising abilities and stakeholders' confidence if the company lost its key visionary.

Curiously, and as one of the parties to the deal, Elon Musk has accepted that he can never admit or deny that he has committed fraud, which in practice means he can never publicly state that he has done nothing wrong.

USA securities regulators settled a lawsuit against Musk alleging that he made false and misleading statements about plans to take the company private in August.

Related News:



Most liked

North Korea says 'no way' will disarm unilaterally without trust
Saturday marked just the most recent time North Korea slammed the USA over stalled denuclearization talks. North Korea's foreign minister put much of the blame for the stalled momentum on USA domestic politics.

Trami batters Okinawa, turns its attention north to Kanto
The terminal building was closed for the day and the monorail as well as bus service to the airport were also suspended. The typhoon has already disrupted transportation services in southern Japan including Okinawa Prefecture.

Trudeau disputes Trump's claims that Canada requested meeting with president
Another sticking point is Canada's protected dairy industry, which isn't in the current deal but where the USA wants concessions. That led Trudeau to suggest that Trump was trying to bully Canada June during a June meeting of the Group of 7 leading economies.

Kavanaugh accuser Ford offers Senate 4 people who corroborate assault claims
The AP has not been able to corroborate them, and continues to investigate. "Christine expressed anger at Mr. Kavanaugh said the allegations would not cause him to withdraw from the confirmation process.

Manchester United forecasts record revenue for 2019
The Manchester United midfielder told the club he wants to transfer to FC Barcelona , The Mail's Chris Wheeler reported Wednesday. Following Saturday's 1-1 draw, Pogba said he wanted the team to be able to "attack, attack, attack" at Old Trafford.

Oil eases, but Iran sanctions keep Brent above $80 a barrel
He said: " OPEC and OPEC nations are as usual, ripping off the rest of the world , and I don't like it, nobody should like it". At the same time, the demand worldwide is reaching 100 million barrels per day for the first time in history.

Russian Federation says ‘misled’ by Israel in plane downing over Syria
Russian Federation in April had hinted that it would supply the S-300 to Assad's government despite Israeli objections. The Russian military aircraft was downed by Syrian government missile defence systems, killing all 15 people on board.

Major powers, Iran meet to salvage nuclear deal without U.S.
A second round of United States sanctions is expected in November, aimed at putting a stranglehold on Iranian oil exports. The rial has lost about two-thirds of its value this year, hitting a record low against the U.S. dollar this month.

'Divisive, Dangerous': TX Sheriff Slams Beto O'Rourke for Comments on Police
On Friday, the Cook Political Report dropped a bombshell: they now forecast the Texas Senate race between far-right firebrand Sen. Beto O'Rourke in Dallas as they tackled numerous topics that included immigration, guns and President Donald Trump .

Walk into my parlor: Greek spiders spin giant web over shore
A Greek beach has been turned into an arachnophobe's worst nightmare, as spiders have covered it in a web some 300 metres long. Basically, when the conditions are appropriate, these spiders get a chance to overeat and mate.

Bloodied Anthony Joshua knocks out Alexander Povetkin in seventh round
Either way, Joshua is scheduled to have another fight at Wembley Stadium on April 13, 2019, but the opponent has not been decided. Povetkin was able to land some good right crosses to the head and body, but Joshua started to pump his jab with more regularity.

Infants, 2 Others Stabbed At Daycare Center in Queens, NY | Crime Time
Police said earlier that the suspect attacked two baby girls and a baby boy, leaving one of the girls in a serious condition. A police officer stands guard at the house were five people were stabbed overnight, Friday, Sept. 21, 2018, in NY .

Trump 'told Spain to build wall through Sahara' to stop migrants
Mr Trump won the 2016 U.S. presidential election partly by promising to build a wall across the 2,000-mile border with Mexico... The Guardian reports that Spanish Foreign Minister Josep Borrell relayed Trump's remarks to attendees at a luncheon in Madrid.

Amazon could launch as many as eight new devices later this month
Per the report, the company intends to release at least eight new devices controllable by its digital assistant by year's end. Earlier this year, Amazon acquired the smart doorbell maker Ring, which also makes devices that are compatible with Alexa .

Mark van Bommel: 'Lionel Messi always the best'
After firing PSV to the Eredivisie title with 17 goals in 2017/18, Lozano has started this season like a man on fire, too. Ter Stegen was one of Barcelona's best players last season and displayed his exploits in between the sticks.