Is Musk in trouble?? We should know something as soon as the legal proceedings initiated by the Securities and Exchange Commission (SEC) against Elon Musk are over.
Musk is accused of fraud in connection with his statement on "Twitter" about his intentions to take Tesla out of the stock exchange and make it a private corporation. Immediately after this tweet, the price of Tesla's stock immediately skyrocketed.
Also, Musk wrote that he had found investors for his proposal, according to which the company's share price was valued at $420 per share.
In a statement by the SEC referring to Musk, it is said that the businessman determined the value of Tesla shares based on the value of the stock at the close of trading, plus another 20%, because he believed that charging a 20% markup is a common practice in obtaining private money transfers of the company.
His calculations gave a cost of 419 dollars, which Musk rounded to 420 dollars.
He did this because he recently found out that this figure has a special meaning in the culture of users of marijuana, and felt that it would amuse his girlfriend - Canadian indie singer Grimes. Musk admitted at the same time that this is not the best reason for determining the company's price.
His tweets, which appeared on August 7, surprised even Tesla's employees.
"Is that the truth?" - wrote then the head of the department for investor relations to the head of the team Musk, said in the statement of claim.