Get ready to see a lot less of Elton Musk as the ex-chairperson of Tesla motors has found himself in yet another lawsuit. The Securities and Exchange Commission announced a lawsuit against the Tesla CEO, disbarring him from his multimillion-dollar company. The interesting development does mean that we have to wonder what’s next for Elon Musk. It is no secret that Musk has had setbacks even before, and it’s also known that he has overcome each of them with a headstrong attitude. The question is, can he do it this time as well? It’s what many of his fans are hoping and wishing for sure.
Million Dollar Tweet
The incident was triggered when Musk tweeted about taking his company private when the stock price hit $420 per share. When questioned about the price, he admitted that he chose the number hoping his girlfriend would find it ‘funny’ given its significance in the marijuana culture. Further, the settlement concludes he must resign as Tesla’s chairperson within 45 days, but the company doesn’t seem to mind the lawsuit as Musk keeps his job as the CEO.
The Elon Musk Outrage
The CEO’s tweet forced shareholders set off on a trading turmoil. The authority’s main concern is that Musk made it seem as though he was prepared to privatize the motor company impending only the shareholder’s votes.
This frenzy resultantly pushed the company’s stock price up six percent. It forced Nasdaq to halt their trades until any official response was received closing Tesla trades at $379.57 on the day the tweet surfaced.
Deal or No Deal?
SEC sued the CEO after he reportedly turned down an initial settlement at the last minute. Following which in the second settlement he faced a $20 million penalty with an ultimatum to resign within 45 days and losing the ability to be reinforced as the Chairperson for three long years.
As part of the settlement, Musk gets a personal lawyer to keep track of his ‘communications’ because, the SEC asserts, the company failed to implement control over its CEO’s twitter activity.
This is not the first time Musk has made headlines for his antics. In the past, Musk caught himself amid a defamation lawsuit as things heated up when he baselessly called a diver a ‘pedophile’ on twitter.
Directed at Vern Unsworth, the accusation was made without any evidence. Unsworth claimed in an interview that Musk’s ‘mini-submarine’ offer was only a PR Stunt. Another controversy revolving around the same incident is where Elon Musk called Narongsak Osatanakorn, head of the joint command center ‘former Thai provincial governor’ and ‘not the subject matter expert’. This was after Osatanakorn pointed out that Musk’s mini-submarine would not have been practical for the rescue maneuver.
America’s Messiest Divorce
Justine Musk, midst the headline-grabbing divorce settlement opened up to the media about their relationship. You’d think she made a comment about Musk, but Justine Musk publicly released every detail about her time with the PayPal co-founder. Summing up the entire saga, she says that Musk rendered her disposable.
The pair share custody of their five sons and Justine deals mostly with the Tesla CEO’s assistant.