Shulou(Shulou.com)11/24 Report--

CTOnews.com August 25, Musk tweeted on the then Twitter platform in August 2018, announcing that it had raised enough funds to privatize Tesla at a price of $420 per share.

The news stimulated Tesla's share price to soar, but in the end, Musk did not do so. Tesla's share price fell sharply as a result, resulting in huge losses for investors. At the same time, the industry believed that Musk was suspected of "manipulating Tesla's share price." therefore, a number of investors jointly sued Musk to court for compensation.

▲ Picture Source Elon Musk 2018 post the case is now in its final stages. In court documents filed the night before yesterday, the Securities and Exchange Commission (SEC) said that 3350 eligible claimants would receive a total of $41.53 million (CTOnews.com Note: current about 302 million yuan) to cover about half of their losses. This is equivalent to about $12000 (currently about 87360 yuan) for each investor, which will be paid through the $42.3 million fund set up when Mr Musk settled SEC's fraud allegations.

It is reported that at the end of September 2018, SEC charged Musk with securities fraud. Soon after, Musk and Tesla agreed to pay a fine of $20 million each (currently about 146 million yuan) to settle the charge. The $40 million paid by Musk and Tesla was later used to set up a "fairness fund", which, with interest, has grown to $42.3 million (currently about 308 million yuan).

Musk had previously asked the court to terminate his settlement with SEC, claiming that the agreement "trampled on his freedom", but the request was rejected by the Federal Court of Appeal in Manhattan.

In court documents filed late Wednesday, SEC asked the judge to finally approve the plan. Manhattan District Judge Lewis Liman, who is in charge of the case, said Thursday that if there is no objection, he plans to approve the payment to investors on or shortly after September 1.

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