Elon Musk high on weed tweet costs him and Tesla $40M
Elon has more than once landed himself in an unfortunate situation with his financial investors and even the media.
From smoking weed on a live show to disregarding investors' and analysts' questions as monotonous during a Tesla income report.
"Am considering taking Tesla private at $420. Funding secured." is the tweet that looked harmless but has landed him in trouble.
Promptly after, Tesla's share price spiked from $344 to $380 with reports that Saudi Arabia had purchased $2 billion worth of shares in the organization.
The impacts of this tweet, which he said was not only a weed joke , is the thing that has landed the 47-year-old business mogul in turbulence.
Notwithstanding later on tweeting that he was never again thinking about taking the company private.
Almost 14 days after the tweet, US Securities and Exchange Commission (SEC) sued him for securities deception.
In an agreement between SEC and him, Elon Musk is to pay a $20 million fine and
Tesla will likewise pay a similar sum independently, totaling the fines to $40 million.
This sum will be circulated to hurt financial investors under a court-affirmed process as indicated by SEC.
That isn't all, Musk will in addition be required to leave as Chairman of Tesla within 45 days.
He will also be barred from holding this post for not less than 3 years, however, he will stay as CEO.