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In: Economics

Was Elon Musk punished for his inventions?

Was Elon Musk punished for his inventions?

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Expert Solution

"A slip of the foot you may soon recover, but a slip of the tongue you may never get over". The words of Benjamin Franklin holds true in the case of Elon Musk.

No, Elon Musk was'nt punished for his inventions. He was punished by the Securities and Exchange Commission for his infamous tweets.

Mr Elon Musk's tweet("Am considering taking Tesla private at 420$ per share.Funding secured")  , promoted the Securities and Exchange Commission(SEC) to file charges against him,first for violating SEC rules and then for violating a settlement agreement.The SEC claims that his tweet caused harm to investors by disseminating misleading information. "If investors feel that they are not getting the correct information, they might lose trust in the entire system".

Musk's first tweet costed him $20 million fine. He also had to step down from his tesla chairmanship for 3 years and to make sure that he get pre -approval of his tweets from tesla's legal counsel. His second tweet costed him another 20 million $.

Rahul Sunny answered 6 hours ago
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