Elon Musk will pay $41 million for a 5-year-old tweet
Elon Musk will have to fork out several tens of millions of dollars. The reason was a tweet that contained misleading information.
Billionaire Elon Musk has been involved in high-profile scandals several times over his statements on social media. Some of them can cost him millions of dollars.
This was reported by Channel 24 with reference to cleanenergyrevolution.
What Musk will pay $41 million for
In August 2018, Elon Musk tweeted that he was going to buy back all Tesla shares at $420 per share with a subsequent delisting. He even claimed to have received financial guarantees for the deal.
However, the purchase did not go through, and Tesla investors filed a complaint with the Securities and Exchange Commission. The SEC sided with them and ordered Musk to pay compensation.
“Musk’s false and misleading public statements and omissions caused great misunderstanding in the market and harmed investors,” the Commission decided.
Thus, Elon will pay 3,350 investors $12.4 thousand each. The total payout will amount to $41 million, although some investors estimated losses due to stock volatility at $12 billion.
Since then, Tesla’s capitalization has increased 10-fold, and Elon Musk, with a net worth of $215 billion, has topped the list of the richest people on the planet.
