EDINBURGH — Elon Musk has been enjoying taunting Tesla shareholders and the Securities and Exchange Commission on Twitter – but the laugh will be on the other side of his face now that he and Tesla have been ordered to jointly pay $40m to settle a legal dispute with the regulator. The Securities Exchange Commission takes market manipulation seriously and, by sending the South Africa-born entrepreneur to the Naughty Corner, has sent out a clear message to Musk and others that misleading traders and investors is not acceptable. Musk has been amusing himself with Twitter, much like US President Donald Trump has, by releasing controversial Tweets at odd hours. There has been speculation that sleeping tablets that spark bizarre behaviour have got the better of Musk, though it is evident his ego has grown along with his business empire. There are hints that he enjoys recreational drug marijuana, too. – Jackie Cameron
Federal Judge Approves Elon Musk, Tesla Settlements With SEC
The Wall Street Journal – A federal judge on Tuesday approved settlements between Elon Musk, Tesla Inc. TSLA -3.03% and securities regulators over the chief executive’s August tweet saying he had secured funding to take the auto maker private.
U.S. Judge Alison Nathan of the U.S. District Court for the Southern District of New York signed orders completing the two settlements without raising questions about subsequent tweets where he appeared to mock the Securities and Exchange Commission’s case against him.
Mr. Musk’s lawyers and the SEC submitted a joint legal filing last Thursday saying the settlements were “fair, reasonable, and will serve the interests of the public and investors.” Judge Nathan had asked the two sides to explain why the deal should be approved.
The judge’s approval was the final step to put in place settlements requiring Tesla and Mr. Musk to pay $20 million each in fines over statements that regulators said were misleading. Tesla and Mr. Musk must pay the fines within 14 days.
Under the deal, Mr. Musk agreed to have some of his public communications vetted by the company before they are released. Mr. Musk also must step down as Tesla’s chairman by Nov. 13, under the terms of the deal, and the company must add two new independent directors. Mr. Musk isn’t eligible to take over as chairman again for three years.
Mr. Musk’s October tweet suggested the SEC was enriching investors betting against the electric-car maker. “Just want to [say] that the Shortseller Enrichment Commission is doing incredible work,” Mr. Musk tweeted on Oct. 4. “And the name change is so on point!”
The settlement also calls for Tesla to create a new committee, composed only of independent directors, to oversee the firm’s procedures for monitoring Mr. Musk’s statements. The SEC gets to approve the members of the committee as well as its legal charter, according to court documents.
