After tweeting that he had secured funding to take Tesla private at $4.20 a share — subsequently found to be false — Tesla CEO and Chairman Elon Musk faced fraud charges from the US Securities and Exchange Commission.
The former PayPal entrepreneur settled with the SEC two days later, agreeing to pay US$20 million and relinquish his chairmanship. Tesla stocks immediately rebounded 17% from earlier losses at the news.
Musk’s twitter activity is a case study for anyone with inside information into a company — your online activity may be governed by disclosure laws.
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