In 2018, Tesla CEO Elon Musk caused quite a stir when he tweeted that he was considering taking the company private, claiming that he had secured funding for the move. The tweet sent Tesla’s stock soaring, but it was soon revealed that Musk had not actually secured funding, leading to an investigation by the Securities and Exchange Commission (SEC).
As part of a settlement with the SEC, Musk agreed to pay a $20 million fine and step down as chairman of Tesla’s board. In addition, Musk and Tesla agreed to each pay a $20 million fine and to appoint two new independent directors to the company’s board.
But that wasn’t the end of the story. As part of the settlement, Musk also agreed to a provision that required him to pay a $20 million penalty if he ever again made false or misleading statements that could affect Tesla’s stock price. And that brings us to today.
Recently, Twitter announced that it had made a payment on Musk’s buyout debt, but the question remains: will he accept it?
It all started last year, when Musk tweeted that he was considering taking Tesla private again. The tweet sent Tesla’s stock soaring, and Musk claimed that he had secured funding for the move. But once again, it turned out that he had not actually secured funding, and the SEC launched an investigation into the matter.
As part of a settlement with the SEC, Musk agreed to pay a $20 million fine and to step down as Tesla’s chairman for three years. In addition, he agreed to have his tweets monitored by Tesla’s lawyers before posting anything that could affect the company’s stock price.
But that wasn’t enough to satisfy some investors. A group of Tesla shareholders sued Musk, alleging that he had defrauded them by making false and misleading statements about the company. The lawsuit sought to have Musk repay any profits he made from the tweets and to bar him from serving as an officer or director of any public company.
In July of 2020, a federal judge approved a settlement between Musk and the SEC that required him to pay $20 million and to resign as chairman of Tesla’s board for at least three years. In addition, Tesla agreed to pay a $20 million fine and to appoint two new independent directors to the board.
But the settlement also included a provision that required Musk to pay a $20 million penalty if he ever made false or misleading statements again that could affect Tesla’s stock price. And that brings us to today.
Twitter recently announced that it had made a payment on Musk’s buyout debt, which is the $20 million penalty he owes if he makes false or misleading statements again. It’s not clear why Twitter made the payment, but it’s possible that Musk agreed to the provision as part of a settlement with the company.
The question now is whether Musk will accept the payment. Some have speculated that he may refuse it, as accepting it could be seen as an admission of guilt. Others have suggested that he may accept the payment and move on, as he has already paid a hefty price for his past tweets.
Either way, it’s clear that Musk’s tweets have caused a lot of trouble for both him and Tesla, and that they will continue to be closely scrutinized in the future. As the CEO of one of the most valuable companies in the world, Musk’s words carry a lot of weight, and investors will be watching closely to see if he can keep them out of trouble in the future.
