The Tweet Drawing $20 Million Fine From SEC Was ‘Worth It’, Says Musk

According to the Chief Executive of electric car maker Tesla, Elon Musk, the tweet which created such an uproar and controversy in August and which resulted in a fine of $20 million each from the U.S. Securities and Exchange Commission for the company and Musk personally, was actually “Worth It”.

This latest controversial tweet from the billionaire entrepreneur, who has a special liking for Tweeter and has used it on multiple occasions to blatantly speak out his mind on business issues, was made in response to a related question by one of the followers of Musk on Tweeter. The tweet was made last Friday evening and soon after this tweet Musk against announced that he would be taking a break from Twitter “for a few days”.

The August 87 tweet by Musk where he had said that he was considering taking Tesla private at $420 a share and had even secured funds for it, was considered to be equivalent to misleading investors by the SEC in September which formed the basis for the fines. The regulators claimed hat there was no factual basis for the claims made in the tweets and the investors were hurt by the market chaos that followed the tweet.

According to a settlement with the regulators, apart from the fine that would be paid by Musk and Tesla, Musk also has stepped down as the chairman of the company for two years but was allowed to retain his position as the chief executive of the company.

Tesla needs to appoint an independent chairman by Nov. 13 according to the settlement agreement.

In relation to another issue, Tesla claimed that it had not received any US subpoena over the production forecasts of its Model 3, said the company after reports emerged in the media that the company was facing a threatening criminal probe in relation to the projections.

A Tesla spokesperson said there was complete cooperation from the company in relation to what it termed as a “voluntary request” for documents from the Department of Justice (DoJ) in September. Criminal charges can be brought against Tesla according to the powers of the DoJ.

“We have not received a subpoena, a request for testimony, or any other formal process, and there have been no additional document requests about this from the Department of Justice for months,” the spokesperson told multiple media outlets in an email.

According to a report published in the Wall Street Journal citing sources, investigations of whether Tesla investors were misled by the company over its announcement of information about the production of its Model 3 sedans is being done by the Federal Bureau of Investigation. The incident dates back to early 2017.

(Adapted from Reuters.com)

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