Elon Musk Resigns As Chairman Of Telsa

Elon Musk Resigns As Chairman Of Telsa

Elon Musk Resigns As Chairman Of Telsa

Less than two days later, Musk and the SEC reached an agreement, in which he would step down as chairman for three years and pay a $20 million fine.

The settlement requires that Tesla appoint two new independent directors and establish a committee of independent board members.

Musk, whose tweets on August 7 on a plan to take Tesla private that was later abandoned, has tweeted only once since the settlement was announced - posting a music video by rap group Naughty by Nature.

Tesla has turned to an army of volunteers to help it meet ambitious third quarter auto production targets after a bruising few days for chief executive Elon Musk, who was forced to pay $20m in order to settle a dispute with U.S. regulators.

The charges come after Musk claimed in August via a series of tweets that he was planning to take the electric vehicle maker private, and implied that such a move was imminent with "funding secured". The funding had not been secured. Saturday's settlement saw the SEC pull back from its demand that Musk be barred from running Tesla, a sanction that many investors said would be disastrous for the loss-making electric carmaker. Tesla shares plummeted 14% on Friday, the biggest drop in nearly five years.

Even after the stock's slide from last year's peak, Tesla is valued at $45.2 billion in the stock market.

Musk will purchase $20 million worth of the company's stock in the next trading opportunity, according to a person familiar with his plans.

According to a report, Elon Musk has resigned as the chairman of Tesla.

"This weekend is the pivot point", he said, describing it as watershed moment not just for the company but for the shift away from the internal combustion engine.

"The total package of remedies and relief announced today are specifically created to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors", said Stephanie Avakian, co-director of the SEC's Enforcement Division.

Furthermore, it adds: "Despite notifying the market in 2013 that it intended to use Musk's Twitter account as a means of announcing material information about Tesla and encouraging investors to review Musk's tweets, Tesla had no disclosure controls or procedures in place to determine whether Musk's tweets contained information required to be disclosed in Tesla's SEC filings".

Tesla did not immediately respond to requests for comment.

But its shares have been hit hard since the SEC filed the lawsuit.

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