The co-founder of PayPal, Elon Musk has recently said that the tweet that cost him a gigantic amount of $20 million fine was worth it. He then tweeted that he would prefer taking a break from Twitter for some days.
The chief executive officer of Tesla used the social media platform Twitter to declare that he was contemplating to take the company private at $420 a share and had secured funding. His tweet led the Securities and Exchange Commission (SEC) to charge $20 million against him which he needs to pay to settle the matter.
Elon Musk also poked fun at the SEC’s mandate on fine to make him more responsible with his tweets. He was charged for misleading the investors with tweets made in August. His tweets had no basis in reality and the regulators claimed the created chaos in the market also hurt investors. However, he and his Tesla have agreed to pay the amount each to financial regulators and based on a settlement the 47-year old business tycoon will reportedly step down as the company’s chairman although he will remain as the chief executive.
Based on so far revealed settlement agreement, California’s Palo Alto-based Tesla is in an urgent requirement to appoint an independent chairman by the mid of November. The American-Australian media mogul Rupert Murdoch’s younger son James Murdoch (who is the present CEO of 21st Century Fox) is considered a leading contender. He became an independent director on the board of Tesla in July 2017 and presently desires to job the chair.
“The SEC settlement required that Tesla implement mandatory procedures and controls to oversee all of Elon Musk’s communications regarding the company in any format, including Twitter. It said any such written communications that contain information material to the company or its shareholders would need to be pre-approved,” Bloomberg noted.
Although Elon Musk and Tesla do not have any reason to worry when it comes to paying fine, still his tweet on $420 share was supposedly an inside joke aimed at his girlfriend Claire Elise Boucher, professionally known as Grimes. It is said to have disappointed the investors and attracted serious attention from the SEC, as reported by Maxim.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]