It seems like Elon Musk couldn't apparently wait to get more of his car maker's stock. The chief executive officer of Tesla, Musk bought about $US10 million in Tesla shares on the open market, on October 30, 2018, according to a regulatory filing. To issue $US20 million worth of new stock that he's scheduled to purchase by next week, he did so while waiting for the company.
To settle fraud charges brought by the US Securities and Exchange Commission, Tesla and Musk agreed to each pay $US20 million last month, related to the CEO's tweets about trying to take the company private. Musk made plans to buy the equivalent amount of company stock, in an apparent attempt to make changes.
Before the start of regular trading, Tesla fell about 2 percent to $US328 as of 9.12am on Tuesday in New York, on an overall level the shares are up about 7.6 per cent this year. After Musk returned to Twitter, the move came after a few days' absence, to say that he deleted his Tesla titles to see what would happen. Other than to say that it seemed fine so far, he didn't elaborate on what that meant.
Musk had tweeted late on Friday, whose Twitter biography now shows no information, that he was signing off Twitter for a few days. Shortly after he posted that this was to settle a Securities and Exchange Commission lawsuit over his tweets about taking the company private the $US20 million penalty he paid was worth it.
Including his tweets, to run Musk's communications regarding the company, the settlement with the SEC required that Tesla implement compulsory procedures and controls. Musk has agreed to step aside as Tesla chairman for three years and to pay a $20 million fine related to his August 7 tweet about taking Tesla private.
His biography page on the company website has no designation, while Musk is referred to as chief executive officer in Tesla's investor relations web page. Musk as chairman, product architect and CEO, the biography page referred to earlier.
Musk's compulsive tweeting and erratic behavior has raised concerns about his leadership. In the third quarter, when Tesla reported a positive cash flow, net profit, and wider-than-expected margins, the Silicon Valley billionaire shut his critics last week. As higher production volumes of its new Model 3 began to pay off, he was delivering on his promise to turn the electric carmaker profitable.
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