Economics
Musk Made to Pay for SEC Delay; Shares Jump on Settlement
- Tesla CEO’s penalty doubled after backing out of discussions
- Agency’s hardball tactics may help allay criticism of its work
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Elon Musk learned that it’s tough to win a fight against the U.S. Securities and Exchange Commission when the agency decides to play hardball.
Tesla Inc.’s chief executive officer agreed over the weekend to pay about twice as much as in penalties to settle claims stemming from his August tweet storm as he would have under a deal he walked away from on Thursday. Musk’s decision to back out of the initial deal led the regulator to sue him for securities fraud later in the day, ratcheting up pressure on the embattled billionaire and his electric-car company.