Why did Elon Musk's tweet cause him $ 20 million in trouble with the SEC?

What's worse than paying millions of fines to the federal government? For Elon Musk, he may have lost his privileges on Twitter.

After slapping Tesla and his billionaire boss with a $ 20 million fine each on Musk's deceiving tweet on August 7, urging federal regulators to take control of the company this weekend, gagged Musk for tweeting any Tesla news without the company's lawyer.

On the one hand, Twitter's muzzle, coupled with Musk's obligation to relinquish his position as chairman of the board for three years and to hire two additional independent directors, shows that the Securities and Exchange Commission is synonymous with trade.

The SEC's quick crackdown "should serve as a warning to all who make public statements, including on social media platforms, without worrying about the accuracy or impact of their "said Glen McGorty, former US Attorney specializing in white business. collar crime at the Crowell & Moring law firm.

More generally, however, the new rules on Twitter threaten to compromise Musk's unpredictable and unpredictable approach to promoting the Tesla brand, which strangely resembles President Trump's Twitter habits. Recently, he landed Musk in a legal fall with a rescue diver in Thailand, whom Musk accused of being a "pedo guy".

It may be that Musk is already testing new ways to bypass the chord. On Sunday, he e-mailed employees who were mobilizing to meet the third-quarter car production targets – and he was quickly released to the press.

"We are very close to achieving profitability and proving that the opponents are wrong," Musk said in an e-mail, just hours after the SEC's settlement announcement, according to Bloomberg.

"If we will do everything tomorrow, we will achieve an epic victory beyond all expectations," he added.

It may not be so simple. While Musk escaped SEC action that may have completely sidelined him, Tesla also admitted last month that the Justice Department had opened a separate investigation into the shocking tweet of Musk, in which he asserted that a "financing was guaranteed" private Tesla at $ 420 per share.

At least seven lawsuits have been filed since Musk's disastrous tweet. The figure of $ 420 – a cheeky reference to marijuana growing – was chosen in part because Musk thought his girlfriend "would find that funny," according to the SEC's complaint.

But few investors laughed.

Tesla shares are down 30% from a high of $ 379.57 after Musk's tweet, with a market capitalization of nearly $ 20 billion cleared in less than two months.

To make matters worse, a number of short sellers also sued because Musk's tweet had initially sent Tesla shares up 11%, forcing them to hedge bets on falling stock prices.

However, not everyone is ready to declare that the end is close to Musk. This is despite the fact that it continues to lack production targets for the Model 3 mass-market sedan. Tesla must make a crucial update Tuesday.

"It's a tough short. This guy seems to have nine lives, "said Andrew Left of Citron Research, one of the short sellers suing Tesla.

"Instead of Elon Musk, he is the Teflon Musk," said Left The Post.

Tesla representatives did not respond to requests for comment.