{"slug":"elon-musk-sec-funding-secured-settlement-2018","title":"Musk Settles SEC Securities Fraud Charges Over \"Funding Secured\" Tweets (2018)","date":"2018-09-29","lastUpdated":"2026-10-09","description":"On September 27, 2018, the Securities and Exchange Commission charged Elon Musk with securities fraud over August 7, 2018 posts saying he could take Tesla private at $420 a share with financing lined up. Two days later Musk settled without admitting or denying the allegations: he agreed to pay a $20 million penalty and to step down as Tesla's chairman for at least three years. The court case closed on October 16, 2018.","summary":"The SEC alleged that Musk's August 2018 statements that he could take Tesla private at $420 per share, with funding secured, were false and misleading because he had not discussed specific deal terms with any potential financing partner. Musk settled two days after being charged, without admitting or denying the allegations.","category":"corruption","severity":"pre-office","ongoing":false,"sources":[{"url":"https://www.sec.gov/news/press-release/2018-219","title":"Elon Musk Charged With Securities Fraud for Misleading Tweets","publisher":"U.S. Securities and Exchange Commission"},{"url":"https://www.sec.gov/news/press-release/2018-226","title":"Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge","publisher":"U.S. Securities and Exchange Commission"},{"url":"https://www.courtlistener.com/api/rest/v4/search/?q=docket_id%3A7946295&type=r","title":"SEC v. Musk, No. 1:18-cv-08865 (S.D.N.Y.), docket record","publisher":"CourtListener (Free Law Project)"},{"url":"https://whyy.org/npr-story/elon-musk-settles-with-sec-agrees-to-step-down-as-tesla-chairman/","title":"Elon Musk settles with SEC, agrees to step down as Tesla chairman","publisher":"NPR (via WHYY)"}],"draft":false,"status":"published","tags":["securities-fraud","SEC","Tesla","pre-office"],"relatedEntries":[],"timeline":[{"date":"2018-08-07","title":"\"Funding secured\" posts","summary":"Musk posts that he can take Tesla private at $420 per share and that financing is lined up."},{"date":"2018-09-27","title":"SEC charges Musk","summary":"The SEC files a securities fraud complaint against Musk in the Southern District of New York."},{"date":"2018-09-29","title":"Settlement announced","summary":"Musk settles without admitting or denying the allegations: a $20 million penalty and removal as Tesla chairman for three years. Tesla separately settles a related charge and pays $20 million."},{"date":"2018-10-16","title":"Case closed","summary":"The district court case is terminated following the settlement."}],"custom":{"posture":"documented","structuredPerpetrators":[{"name":"Elon Musk","role":"Chief executive officer and chairman, Tesla, Inc. (2018)","institution":"Tesla, Inc."}],"updateLog":[{"date":"2026-10-09","summary":"Added for the Before Office record. Musk first joined the administration on January 20, 2025."}],"keyPoints":["On August 7, 2018, Musk posted that he could take Tesla private at $420 per share and that financing was lined up","The SEC's complaint, filed September 27, 2018, alleged Musk had not discussed specific deal terms with any potential financing partners","Musk settled on September 29, 2018, without admitting or denying the SEC's allegations","Musk and Tesla each agreed to pay a $20 million penalty; Musk agreed to step down as Tesla's chairman and not seek re-election as chairman for three years","The case in the Southern District of New York was terminated on October 16, 2018; the court later approved a plan to distribute the penalties to harmed investors (March 25, 2022)"],"verificationStatus":"cross-referenced","postureNote":"SEC civil enforcement action (S.D.N.Y. No. 1:18-cv-08865) resolved by consent settlement without admission or denial of the allegations.","subjects":["elon-musk"],"legalStatus":"settled-no-admission"}}