GLOBAL ONE NEWS (G1)—Elon Musk has agreed to pay $20 million in fines and step down as Tesla chairman after he reportedly posted misleading tweets about the company Tesla going private.
The Securities and Exchange Commission (SEC) filed a lawsuit against Musk alleging he made “false and misleading” statements in those tweets and didn’t comply with regulatory requirements.
On Twitter, Musk claimed shares would rise to $420 each as a result of the reported funding, but the SEC states he did not actually secure anything.
As a result, Musk has been forced to step down as chairman of Tesla, but will remain as CEO and will not have to admit or deny the allegations.
Here’s the real kicker — the SEC alleged in its charges against the billionaire that he chose the number 420 to impress his girlfriend Grimes — a musician.
Although the settlement has been reached, the DOJ reportedly is still investigating whether Musk’s posts about taking Tesla private constitute criminal activity.