The SEC is pissed… at who else but Tesla CEO Elon Musk. Musk is accused of making “false and misleading” statements to investors via Twitter. Remember that? If not, let us refresh your memory. On August 7th, Musk tweeted that he was considering taking his company private at $420 per share with funding secured. The SEC is claiming that he didn’t secure funding.
On the day of the tweet… Tesla’s share price shot up by 9%. However, Tesla hasn’t been doing so hot since and Tesla dropped another 11% in after-hours trading on Thursday. Elon Musk, of course, disagrees with the SEC’s claims and released a statement saying, “This unjustified action by the SEC leaves me deeply saddened and disappointed.”
And it gets stupider… because the SEC’s complaint alleges that Musk rounded up the go-private price to $420 because he thought it would be funny (get it? 420). Musk also failed to consult with, well, anyone of importance about the decision before putting it out there. And, if you know anything, you would know that Musk abandoned his well thought out plan three weeks after the tweet. We’ve said it before, and now we’re repeating it – Elon Musk needs to stay the hell away from Twitter.