Tesla Inc. (NASDAQ: TSLA)
Elon Musk and the SEC have reached an agreement according to a report on Saturday after the SEC sued Musk last week stating he tweeted “false and misleading statements” about taking the company private which led to “significant market disruption”.
The SEC in its suit said the meeting between Musk and the fund “lacked discussion of even the most fundamental terms of a proposed going private transaction.”
To settle the fraud charges brought on by the SEC, Musk is to pay a $20 million fine as well as give up his position as Chairman on Telsa’s board of directors for at least three years.
According to the report, Tesla will also pay a $20 million fine that will combine with Musk’s $20 million to go towards paying investors affected by the tweet and price manipulation.
Shares of Tesla have been nothing short of extremely volatile following the tweet and have since tanked nearly 33%. Some could see this as a blip in the road and a good opportunity to buy Tesla shares at a much better price.
However, we have to remember that Tesla still isn’t profitable and has a cash shortage so approach long term investments with this in consideration.