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Breaking News: Elon Musk Steps Down as Tesla’s Chairman & Will Pay a $20 Million Fine To The SEC

The SEC has officially settled charges with Tesla CEO over his tweet to take the company private, The settlement here ended in Elon having to pay a hefty penalty of $20,000,000. On top of that fine he has to give up his spot as chairman of the board for 3 years. Also, the SEC slapped a $20,000,000 fine on Tesla itself, so that is $40 million in fines for Tesla and Elon combined just for a tweet that was considered manipulation of the stock price. Something that is a big “no no” in this world.

Elon tweeted on August 7  “Am considering taking Tesla private at $420. Funding secured.” — That $420 number was considerably higher than the share price at the time of the tweet and the SEC was not happy about it. He woke the beast and is now paying the price in the sum of $40,000,000.

The day this tweet surfaced Tesla stock rose 6 percent shocking investors of Tesla and instantly putting up a red flag for the SEC as it looked just like manipulation of a stock. The day the tweet went out is the day the SEC investigation began on Elon Musk and Tesla.  Elons use of Twitter has created many stresses and pains for him, as well as his company that he founded. In the final charges, SEC regulators told the board members of Tesla  it was their fault for not controlling and managing Elon Musk’s rampant tweeting. Elon Musk will still remain CEO of Tesla he is only no longer chairman of the board.

As of this Friday the 28th Tesla stock has crashed quite a bit, being down a hurtful -42.75 points with a total share price of 264.77. We are not sure how this will affect Elon Musk and the future of Tesla but only time will tell. Below you can watch the journey Elon Musk has been through and what he has fought for to take his companies to the next level. This SEC fine is just another obstacle for Elon Musk to get over.