Elon Musk's Tesla tweet fund administrator is not filing statements, judge says | Tech News

Elon Musk's Tesla tweet fund administrator is not filing statements, judge says

A judge is questioning the status of a $40 million fund that was established from fines paid by Elon Musk and Tesla Inc. over controversial tweets.

By:BLOOMBERG
| Updated on: Aug 21 2022, 22:47 IST
Tesla
The SEC reached a settlement with Elon Musk and Tesla after suing the billionaire over his tweeted claims, (AFP)

A judge is questioning the status of a $40 million fund that was established from fines paid by Elon Musk and Tesla Inc. over controversial tweets. The firm appointed in May to administer distributions from the fund, set up by the U.S. Securities and Exchange Commission for harmed investors, hasn't filed required accounting statements, U.S. District Judge Alison Nathan said in an order Tuesday. She directed Rust Consulting to submit a status report by Jan. 7.

The SEC reached a settlement with Musk and Tesla in September 2018 after suing the billionaire over his tweeted claims weeks earlier that he had the funding and investor support to buy out stockholders at $420 a share. The SEC alleged the tweets were false, and while Musk and Tesla didn't admit to wrongdoing as part of the accord, the agency set up a so-called Fair Fund to repay investors harmed by Musk's statements.

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Musk Says He Has Sold Enough Stock to Unwind 10% of His Stake

(Bloomberg) -- Elon Musk has disposed of enough shares to reach a target of reducing his stake in Tesla Inc. by 10%, the head of the electric-car leader said in an interview.

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“I sold stock that should roughly make my total Tesla share sale roughly 10%,” he told satirical website Babylon Bee.

Musk has been offloading Tesla stock since asking his Twitter followers in November whether he should sell some of his stake. The move is part of a plan to generate cash to cover an estimated tax bill of more than $10 billion on stock options Musk is due to exercise.

Late Sunday, he said in a Tweet that he would pay more than $11 billion in taxes this year, hitting back at criticism from a number of lawmakers like Senator Elizabeth Warren who called Musk a “freeloader” on social media. Warren and other leading Democrats are alleging billionaires like Musk are avoiding paying taxes.

“I don't have any offshore accounts, I don't have any tax shelters,” Musk said, adding that he could do his taxes himself in just a few hours. “Everything is extremely transparent.”

The latest regulatory filings show Musk has sold yet more shares in Tesla for $528 million, taking the total to around 13.5 million shares for about $14.1 billion. His comments to Babylon Bee suggest he has since disposed of yet more stock.

Tesla has declined by about a quarter since a peak on Nov. 4, just prior to Musk's Twitter poll, to which the majority of respondents answered “yes.” The shares rose 2.4% in premarket trading after closing at $938.53 in New York on Tuesday.

Musk, 50, is the world's richest person, atop the Bloomberg Billionaires Index with a fortune of $244.9 billion.

“I'm not sure it's all that productive or interesting” to focus on his wealth, Musk said. “Essentially all of my net worth is just in SpaceX and Tesla stock, these two companies I helped create and have run now almost 20 years that have done a lot of useful things.”

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First Published Date: 23 Dec, 00:18 IST
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