After Elon Musk announced on Twitter on 7 August that he is considering taking Tesla private at $420 per share, Elon Musk is now having a Twitter babysitter as it is completely illegal to provide fake information to shareholders about corporate events.
The tweets were considered as the premise of SEC’s (Securities and Exchange Commission) lawsuit against the Tesla CEO. The take Tesla private tweets has brought him some consequences as it already cost him about $20 million USD. And when he refused a very important deal at the very last minute, the SEC has sued him. And now as a part of the settlement, this billionaire have to resign from the Tesla chairman position within 45 days and cannot be elected in the next three years.
The Tesla and Elon Musk will pay $20 Million USD separately as well, Tesla is hiring a lawyer for keeping an eye on the communication on Musk which is also a part of the settlement; as I said before, a Twitter babysitter.
The settlement is also a fun one, Musk doesn’t have any chance as he cannot admit or deny it. Steven Peikin, the enforcement division of SEO’s co-director said, “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders,” Also, the settlement has a precise feature, the deal had been an initial dealbreaker for him and at the very end of the game, Musk took step back.
Musk’s tweets are also being studied by The Department of Justice as well the settlement of SEC says that they don’t have any connection with any kind of potential criminal liability. Everyone is also quite unsure if the board of directors would help him to make the situation better.
A senior equity analyst at research investment firm CFRA Research, Garrett Nelson said, “I would say that there’s an Elon Musk premium in the stock, – But as he is increasingly doing these erratic things, though, I think you’re seeing more and more shareholders kind of shift their attitudes as far as, strategically, what would make sense for the company going forward, and what his role is there.”
Tesla is now thinking that it would be much better if they leave Musk as just the CEO of Tesla, removing him from the chairman as there is a bunch of Musk, his brother as well.