Elon Musk to be questioned in lawsuit over Twitter buyout change of course – Business Standard

In January, the US Securities and Exchange Commission filed a lawsuit against Elon Musk, just days before Donald Trump’s presidential inauguration. The lawsuit alleged that Musk had violated securities laws by failing to truthfully communicate with investors, specifically regarding his plans to take Tesla private.

The SEC accused Musk of engaging in market manipulation through a series of tweets where he claimed to have secured funding to privatize Tesla at $420 per share. This caused Tesla’s stock price to soar, but it was later revealed that Musk had not actually secured the necessary funding. As a result, the SEC sought to remove Musk from Tesla’s board of directors and impose fines on both him and the company.

Musk initially refused to settle with the SEC, which led to heightened tensions between him and the regulatory agency. However, just days before the two parties were set to go to trial, Musk agreed to a settlement that required him to step down as Tesla’s chairman, pay a $20 million fine, and accept additional oversight of his communications regarding Tesla on social media.

The settlement was seen as a victory for the SEC, which had been concerned about Musk’s unchecked power and influence over Tesla’s stock price. It also served as a warning to other CEOs and executives about the consequences of making false statements that could impact the financial markets.

Despite the controversy surrounding Musk’s actions, many of his supporters maintained their admiration for him as a visionary and innovative leader. They pointed to his achievements in the electric car industry and his efforts to revolutionize space travel through his company, SpaceX, as evidence of his entrepreneurial spirit.

However, others criticized Musk for his erratic behavior and questionable decision-making, particularly when it came to his use of social media. They argued that his tweets often lacked caution and were misleading, causing unnecessary volatility in the markets and raising concerns about his leadership style.

In the end, Musk’s settlement with the SEC marked a turning point in his career, as it forced him to publicly acknowledge the need for greater transparency and accountability in his communications. While he may have retained his position as Tesla’s CEO, the incident served as a cautionary tale about the perils of unchecked power and the importance of integrity in leadership.