Elon Musk to step down as chairman of Tesla

Source: The Hill | September 29, 2018 | John Bowden

Tesla and SpaceX CEO Elon Musk has reportedly reached a settlement with the Securities and Exchange Commission (SEC) after his abandoned attempt to take Tesla private.

As a part of the settlement, which is still subject to court approval, Musk will have to step down from his role as chairman at Tesla for at least three years and pay a civil penalty of $20 million.

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms —including an obligation to oversee Musk’s communications with investors—and both will pay financial penalties,” said Steven Peikin, who co-directs the SEC’s enforcement division.

Tesla will also pay a separate fine of $20 million, according to the press release. The violations stem from Musk’s tweet last month stating that he planned to take the company private at $420 per share, claiming that he had secured funding for such a deal.

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