Elon Musk Steps Down Controversy Around The Tesla Company
After recently tweeting “Am considering taking Tesla private at $420. Funding secured,” Elon Musk was forced to step down as chairman of Tesla. While he remains the active chief executive officer, Tesla will pay $20 million to settle the charges set against the company by the U.S. Musk now has less than 40 days to step down, according to the deal made between Tesla and the U.S. Securities and Exchange Commission (S.E.C.) As a result, Tesla’s shares dropped 14% and many people are worried about the long-term stability of the company. People pulled out because they were uncertain.
In his tweet, Musk states that they have the funding required to take Tesla private, but neither he nor the the company disclosed where the funding was coming from. It was shortly after the tweet that the U.S. Securities and Exchange Commission got involved and sued the company for misleading its shareholders.
This is the second time that we’ve seen shareholders pull out of Tesla within the last month. In early September, Elon Musk joined Joe Rogan on his show, The Joe Rogan Experience. Many shareholders were either tuned in or saw highlights of the show and decided not to support Musk after watching. Although it was legal, the two drank whiskey and smoked marijuana on a live stream, causing the Tesla stock to drop 9%.