Post written by Abby Hopkins
If you haven’t been up to date on the current news, Elon Musk is possibly facing a lawsuit and when I say possibly, I mean he definitely is.
Let me backtrack for the people who aren’t up to date on the situation. Musk is currently facing a lawsuit involving the SEC. As stated by an article by CNN Tech, “The Securities and Exchange Commission sued Tesla's CEO on Thursday for making "false and misleading" statements to investors. It's asking a federal judge to prevent Musk from serving as an officer or a director of a public company, among other penalties.” This was all set off by a simple tweet that Musk posted August 7th that stated “Am considering taking Tesla private at $420. Funding secured.” However the SEC stated that he had not actually secured the funding. In light of the lawsuit as a whole, especially with the Tesla stocks going down by 11% because of the tweet, Musk abandoned the plan to take Tesla private less than three weeks after he first tweeted about it. He later said his "funding secured" comment was based on talks with Saudi Arabia's sovereign wealth fund, which he said had urged him to take the company private and offered to increase its investment in Tesla. The worst case scenario for this situation is that the Tesla stocks could go down by so much more and he could even lose the CEO spot for good because of the lawsuit stating that he cannot be a director of any public company.
Let’s be real here, stating what he stated originally on twitter was not the best idea at all. Especially when the SEC got involved, in my opinion, he should have came out with the truth and apologized for what he said so it didn’t become this huge disaster that it ended up being.