Elon Musk May Lose His Job As Tesla CEO Because Of This Tweet; Here's All About It

After Musk's tweet on Tesla's stock price, the stock tumbled more than 10 per cent and the market valuation reached $127 billion from around $141 billion before the first tweet.

(File Photo/ Getty)

San Francisco: Elon Musk, who is known for his outspoken nature, may find himself in troubled waters yet again because of controversial tweets as Tesla’s Board and the US Securities and Exchange Commission (SEC) might take notice of Tesla’s market value nose diving by $14 billion soon after his first tweet. On Friday, the billionaire tweeted, "Tesla stock price is too high imo". Tesla’s stock was down more than 10 per cent. Tesla's market valuation was worth around $141 billion before the first tweet and it reached around $127 billion, according to IANS report. The tweet also resulted in pulling down Musk's own stake by $3 billion in the electric car-maker. One of users asked Musk: "Are you doing it because you need the cash or is this to protest the world burning down?"

Tesla stock price is too high imo

— Elon Musk (@elonmusk) May 1, 2020

Musk also replied to the tweet saying, "Don't need the cash. Devoting myself to Mars and Earth. Possession just weigh you down". Earlier this week, Musk criticised the US stay-at-home restrictions to curb the coronavirus outbreak "fascist"  even as the Tesla posted its third quarterly profit in a row. The present tweet reminds of the previous debacle in which the tweet in 2018 about Tesla "going private, funding secured" at $420 a share, cost him the role of Chairman.

I am selling almost all physical possessions. Will own no house.

— Elon Musk (@elonmusk) May 1, 2020

After the tweet in August 2018, he has reached a settlement of fraud charges with the SEC.  He also lost the role of chairman of the Tesla board besides paying $40 million in penalties, split equally between the company and Musk. "As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla's board will adopt important reforms -- including an obligation to oversee Musk's communications with investors -- and both will pay financial penalties," Steven Peikin, Co-Director of the SEC's Enforcement Division, said in a statement. The SEC had complained that Musk's misleading tweets had propelled Tesla's stock to rally by over six percent on August 7 causing significant market disruption. After the fiasco, the Tesla founder is supposed to seek pre-approval if his tweets include anything regarding the company's securities, including his acquisition or disposition of shares, nonpublic legal or regulatory findings or decisions.