Elon Musk faces charges by SEC because of his ‘funding secured’ tweet

Elon Musk, the brainchild of the Tesla electric car and other innovations, is on the verge of losing his footing and position as the CEO of Tesla. Unfortunately, this all started as the result of a tweet, one which could now jeopardise his career or at least put a blemish on it. The U.S securities regulators are taking him to court with the allegation of him having committed securities fraud. Apparently, Musk made the blunder of announcing his plans of making Tesla a private company and claimed that the funded had already been done even though nothing was actually finalised.

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The Securities and Exchange Commission says that he falsely claimed in a tweet made on August 7. The tweet was mentioning the promise of the company going private and that funding was supposed to go private at $420 a share. This did seem to be on the high side though. Musk is now being accused of false and misleading statements. Steven Peikin, co-director of the SEC’s Enforcement Division, said that:

“Corporate officers hold positions of trust in our markets and have important responsibilities to shareholders… An officer’s celebrity status or reputation as a technological innovator does not give license to take those responsibilities lightly.”

Musk, however, felt that this was unreasonable that in a statement issued by Tesla, he regarded the decision as an unjustified action, saying:

“I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”

Taking such measures against Musk is certainly no easy task as the man is a huge celebrity with an even bigger fan base. So, what can actually be done? Here’s what Peter Henning has to say about it:

“You’ve got one of the iconic CEOs of the day who is being threatened with removal from office. They can’t strip of him of his shares but they can keep him out of the C-suite.”

While Musk cannot be ousted altogether, he may have to step down temporarily and sat away from the limelight. The only hope for Musk right now is getting away with a penalty and a slap on the wrist. However, at this very moment, that chance seems bleak.

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