The Ridge

Filed under News, Showcase

The Most Expensive Tweet in History

Elon Musk forced to step down from Tesla and pay $20 million fine.

Hang on for a minute...we're trying to find some more stories you might like.


Email This Story






As of October 1st, The US Securities and Exchange Commission (SEC) has reached a settlement with Elon Musk which will see him step down as chairman of the company he founded, Tesla, and includes a $40 million fine for him and his company.

The value of Elon Musk’s Tesla holdings slid by $1.44 billion on Friday, a day after the SEC charged him with making “false and misleading statements”   in a tweet about having funding secured to take the electric-car company private.

The tweet in question came in early August and stated: “Am considering taking Tesla Private at $420. Funding secured.” Soon after, Tesla stock rose to a record high of $387 per share.

The stock has since plummeted in wake of  investigations launched about possible wrongdoing by the company and Musk himself, first by the SEC and now by the Justice Department. This is because his tweet could be regarded as fraud potentially made to misled investors.

Musk had not discussed the decision to delist with his board members. He came to the figure of $420 a share through a misunderstanding on how to calculate a firms “standard premium” and in reference to the number’s relevance in cannabis culture.

Tesla itself is also under investigation because statements by its CEO can be considered the official word of the company.

Musk’s follow-up announcement that he wouldn’t be taking Tesla private after all has also seemed to hurt the stock.

At its low point on September 11th, Tesla shares were selling at $275 — down almost 30% from its recent high.

Despite calling the suit “unjustified”, Musk and Tesla reached a settlement less than a week after the suit was filed. The agreement, which is still subject to approval by a court, demands Musk step down from his position as chairman within 45 days for at least three years and pay a $20 million fine. Tesla, along with also paying a $20 million fine, will be hiring two new, independent directors to the board and will start monitoring Musk’s public communications more closely.

Subsequently, Elon Musk’s net worth was down $370 million and has continued to plummet.

Print Friendly, PDF & Email

About the Writer
Aliyah Dearing, Writer, Editor

Aliyah Dearing is a junior at Ashley Ridge and has been contributing to The Ridge for 2 years. She is an avid theater student and enjoys acting, singing, makeup, and being a professional film snob. She plans to attend College of Charleston for communications and political science, and dreams of working at MSNBC as an executive producer.

Print Friendly, PDF & Email
Leave a Comment

Comments are moderated by editors of The Ridge Staff. Anything not deemed school appropriate will not be published.

If you want a picture to show with your comment, go get a gravatar.




Navigate Right
Navigate Left
  • The Most Expensive Tweet in History

    News

    The Real Reason Pill Bottles Have Foil Seals

  • The Most Expensive Tweet in History

    News

    Bill Cosby Sent to Jail after 14 Years of Sexual Assault Allegations

  • The Most Expensive Tweet in History

    News

    Swig & Swine Will Be Back In Business Soon

  • The Most Expensive Tweet in History

    News

    Too Cool to Juul

  • News

    Hurricane Florence’s After Effects

  • News

    Video Games Are Not To Blame

  • The Most Expensive Tweet in History

    News

    Emmys Proposal Shocks Nation

  • The Most Expensive Tweet in History

    News

    Historic Ruling: India Lifts Ban on Homosexuality

  • News

    Mass Shooting at Madden Gaming Tournament

  • The Most Expensive Tweet in History

    News

    Body of Missing Iowan Student Found

The newspaper of Ashley Ridge High School!
The Most Expensive Tweet in History