Elon Musk charged with fraud:-SEC

by calvin chirayath, Business student

The technology giant Tesla CEO Elon Musk been sued by the Securities and Exchange Commission for fraud, the company was also expecting to be sued, though Tesla was not named as a defendant in the complaint

Shares of the automaker ,rocketmaker ,hyperloopmaker fell more than 13% in extended trading. The stock is roughly 30 percent below its 52-week high of $387.

The fraud case was alleged on the bases of Musk issueing false and misleading statements

As a result Elon Musk had to step down as chairman of Tesla, but remained as CEO.

Briefly speaking, In August , Musk took to Twitter to reveal that Tesla had enough support from investors to take the company at a premium of $420 per share.However such a misleading tweets caused significant market disruption and later fined Musk and Tesla a total of $40million.. As a settlement with SEC Musk had to step down as chairman, which took a huge toll on him.

                                                                       Tesla

                                                                        Spacex

                                                                     Hyperloop

Alongside the settlement,the SEC also charged Tesla with failing to have required disclosure controls related to Musk's tweet, according to the agency Tesla has already agreed to settle this charge. Both Musk and the company will pay separate $20million fine which will be distributed to harmed investors under a court approved process. The company will also hire a lawyer to monitor Musk's communications, including his tweets, according to the agreement.

A LAWYER WILL NOW OVERSEE MUSK'S COMMUNICATION'S-
INCLUSING HIS TWEETS

According to musk, he calculated the $420 price per share based on a 20% premium over that day's closing share price because he thought that was the standard price.

"Tesla and the board of directors are fully confident in elon, his integrity and, his leadership of the company, which has resulted in the most successful US auto company in over a century.

But whatever may come, Elon musk is the future of our generation, "I Believe in him", The New generation is counting on him because he is our "TONY STARK".