[ EOQ ]

Elon Musk

Role at time of quote: CEO of Tesla, Inc.

"Am considering taking Tesla private at $420. Funding secured."
Verified Social Media 7 August 2018

Context

Before — what was asked or happening

Tesla had been under significant short-seller pressure throughout 2018. Musk had met with representatives of Saudi Arabia's Public Investment Fund in late July 2018, during which he said the fund expressed support for taking Tesla private. On August 7 2018 at 11:48am ET, with no prior board approval, legal review, or regulatory notification, Musk posted the statement directly to his Twitter account.

After — what followed or was clarified

Tesla's stock price immediately surged 11%, triggering a trading halt. The SEC opened an investigation within hours. Musk published a follow-up blog post but no deal materialised. In September 2018 the SEC sued Musk for fraud. He settled, paying a $20 million fine and stepping down as Tesla board chairman for three years. A class-action shareholder lawsuit went to trial in 2023. A California jury found Musk not liable for shareholder losses. Musk's own legal team acknowledged the wording was rushed, though Musk maintained he genuinely believed funding was in place.

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Added to End Of Quote: 8 May 2026