Tesla CEO Elon Musk is in the danger of losing his job as the car makers Board as well as the US Securities and Exchange Commission (SEC) must have taken into account his bizarre tweet that left Tesla’s market value go down by $14 billion in hours.
The tweet saying that Tesla stock was “too high” also knocked $3 billion off Musk’s own stake in the electric car-maker.
His earlier notorious tweet in August 2018 when he posted about Tesla “going private, funding secured” at $420 a share cost him his role as Chairman.
The August 2018 tweet resulted in Musk and Tesla reaching a settlement of fraud charges with the SEC. The settlement included $40 million in penalties, split equally between the company and Musk, and the removal of Musk as chairman of the Tesla board.
“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms — including an obligation to oversee Musk’s communications with investors — and both will pay financial penalties,” Steven Peikin, Co-Director of the SEC’s Enforcement Division, said in a statement.
According to the SEC’s complaint, Musk’s misleading tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to significant market disruption.
On Friday, Musk again stirred the controversy by tweeting that “Tesla stock price is too high imo (in my opinion)”.
Tesla’s market valuation was worth around $141 billion before the first tweet and it nosedived to nearly $127 billion.
One user replied to Musk: “Are you doing it because you need the cash or is this to protest the world burning down?”
Musk replied: “Don’t need the cash. Devoting myself to Mars and Earth. Possession just weigh you down”.
Musk is supposed to seek pre-approval if his tweets include anything regarding the company’s securities, including his acquisition or disposition of shares, nonpublic legal or regulatory findings or decisions.
Elon Musk aims to become a monk who sold his Ferrari
Multi-billionaire tech mogul Elon Musk on Friday fired off a series of weird tweets, mentioning he is selling “almost all” his physical belongings and devoting himself to Mars and Earth.
“I am selling almost all physical possessions. Will own no house,” Musk said in one tweet.
He also mentioned that his girlfriend, songwriter and producer Grimes, is mad at him.
Facing follow-up questions from his followers, the Tesla CEO told one user that this supposed sale of everything he owns is not because he needs the cash but because he is devoting himself to Mars and Earth as well as possession just weigh people down.
Responding to Musk, a user tweeted, “Heading to Tibet to become a monk too? Btw, where are all those ventilators you promised California?”
Another user posted to him: “It is frustrating cause I have almost all my savings invested in Tesla and I’m not some rich guy. He doesn’t recognize this also hurts the small folks. I wish he’d just delete twitter at this point.”
Some users even mentioned that they are happy to know that Musk and his musician girlfriend who recently confirmed she is carrying the child of Musk expected this month are together.
“This is the best news I’ve heard so far. This means you’re still together, despite speculation to contrary. Maybe that is what this is about,” mentioned another user.
In another tweet, Musk said he thinks the stock price of Tesla is “too high” — a tweet that was followed by a sharp drop in the share price of the company. Tesla’s stock went down a massive 9.3 per cent with his tweet.
Slamming restrictions imposed on people’s movements in the light of the COVID-19 crisis, Musk on Thursday said that telling people that they cannot leave their home is “fascist”.
