Elon Musk Sued Over 420 Tweet Which Caused Tesla Stock’s to Tank
The Securities and Exchange Commission is suing Elon Musk for sending out a tweet which not only got the world wondering whether he smokes weed, but led to chaos among his investors.
Photo by NASA via Wiki Commons
The latest Elon Musk controversy might be his most serious one yet. The Securities and Exchange Commission (SEC) announced on September 27 that the Tesla CEO will appear in court over the infamous 420 tweet that he sent out earlier last month.
In the tweet, Musk said he was considering taking his company Tesla private and raising the company’s stock to $420 a share. The number led many to speculate as to whether Musk smokes weed, considering how oddly specific the figure was and its symbolic importance to the cannabis community. Musk’s recent string of out-of-character behavior didn’t help either.
According to the SEC, Musk did not discuss or confirm details with Tesla investors before sending out the tweet, which included the key deal terms and price of shares. By law, these actions can be interpreted as manipulation of the market.
As reported by Bloomberg, just a few hours after the SEC’s announcement of the Elon Musk lawsuit, Tesla shares fell by 10 percent. This is not the first time Tesla stock has taken a hit in the last few months.
Earlier this month, Musk appeared on the Joe Rogan podcast for an interview. The episode, which has since garnered 13 million views, shows Musk and Rogan sharing a blunt during the two and a half hour podcast. Despite cannabis being legal in California, the state where Rogan records his podcast, Tesla stock went down 6 percent per share, with two executives quitting the company as a result of Musk’s actions.
Last week, New York-based scientist Neil deGrasse Tyson pointed out that Musk should be allowed to use cannabis without scrutiny. However, deGrasse Tyson cautioned Musk to follow the SEC’s regulations, which he stated could land the entrepreneur in trouble for projecting information that manipulates the stock market.