Elon Musk’s ‘Funding Secured’ Post to Take Tesla Private Still Cost Him 8 Years Later: SEC Moves to Close Payout to TSLA Investors Rishabh Mishra Thu, November 12, 2026 at 7:30 AM EST 5 min read TSLA -1.31% Trade Tesla on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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The U.S. Securities and Exchange Commission has completed the distribution of $41.53 million to investors and asked a federal judge to formally close the settlement fund stemming from Elon Musk's 2018 claim that he had "funding secured" to take Tesla Inc. private, according to a Tuesday court filing.
Reuters reported that according to the SEC's filing in Manhattan federal court, a claims administrator distributed the $41.53 million to 3,350 eligible claimants. This total includes the initial fines plus interest, after deducting administrative fees, the regulator stated.
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The SEC noted that these claimants received 51.7% of their approved claims because their total financial losses exceeded the size of the Fair Fund. The filing also stated that an additional 3,046 claims were rejected by the administrator.
The Fair Fund was established following a 2018 SEC civil enforcement case charging Musk with securities fraud, the regulator noted. The SEC alleged the fraud occurred when Musk posted on Aug. 7, 2018, that he had "funding secured" for a potential buyout of the electric vehicle manufacturer.
According to the Reuters report, the SEC stated that the social media posts caused Tesla's shares to close more than 6% higher that day before falling once it became apparent that financing was not in place.
To resolve the case, Musk and Tesla each paid a $20 million civil fine designated for investor victims, though neither defendant admitted to any wrongdoing, according to the settlement terms. As part of the agreement, Musk relinquished his role as Tesla chairman and agreed to have company lawyers review specific social media posts in advance.
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With the payouts finalized, the regulator requested the court to close the fund. "Distribution of the Fair Fund is now complete," the SEC stated in the filing. The SEC added that the remaining balance of approximately $449,000 in the Fair Fund will be transferred to the U.S. Treasury.
The stock was lower by 14.70% over the last year, down 15.55% year-to-date, and lower by 0.76% over the last month. It closed 0.46% higher at $379.78 per share on Tuesday; the stock was up 1.28% in overnight trading.
Benzinga's Edge Stock Rankings indicate that TSLA maintains a positive price trend in the short and medium terms but a negative trend in the long term, with a moderate quality score.
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