That tweet he made a few weeks ago about taking the company private has been costly:
Elon Musk agrees to pay $20 million and quit as Tesla chairman in deal with SEC
I suppose the $20 million he can afford, but stepping down as chairman means he's no longer the top boss. Maybe that's just a technicality, but eventually it means he could conceivably be forced out (like the founder of Papa John's). I don't think that's what will happen, but you never know.
It was a stupid tweet because it affected the share price, but it wasn't really true. Or at least it was misleading.
So the total fine is actually $40 million, half paid by Musk himself, and half by the company.Elon Musk agreed Saturday to step down as chairman of Tesla and pay a $20 million fine in a deal to settle charges brought this week by the Securities and Exchange Commission.
Under the settlement, which requires court approval, Musk will be allowed to stay as CEO but must leave his role as chairman of the board within 45 days. He cannot seek reelection for three years, according to court filings.
He accepted the deal with the SEC "without admitting or denying the allegations of the complaint," according to a court document.
Separately, Tesla agreed Saturday to pay $20 million to settle claims it failed to adequately police Musk's tweet.
"The $40 million in penalties will be distributed to harmed investors under a court-approved process," the SEC said in a press release.
The company also agreed to appoint two new independent directors to its board and establish a board committee to oversee Musk's communications.
Tesla declined to comment. A spokesperson confirmed Musk will be permitted to remain a member of the board.
The announcement from the SEC comes two days after the agency filed a lawsuit against Musk, claiming he misled investors. The suit centers on tweets Musk sent on August 7 in which he said he had secured funding to take Tesla private at $420 a share, causing the company's stock to soar. He had not secured the funding, the SEC said.
The lawsuit sought to ban Musk from serving as an officer or director of any publicly traded company.
Musk called the SEC's suit "unjustified."
I hear he's also getting sued by that British cave diver who he called a "pedo". Maybe he should be more careful about what he says on Twitter.