Musk to step down as Tesla chairman, pay $20mn fine as settlement with SEC

https://www.rt.com/business/439951-musk-tesla-chairman-sec/

Version 0 of 4.

Elon Musk has settled with the US Securities and Exchange Commission, which had sued him for fraud over his tweets about taking Tesla private. Musk will have to step down as chairman, but gets to keep his CEO status.

According to the settlement filing, Musk is given 45 days to step down as chairman of the board of directors of Tesla, Inc for three years. He will also have to pay a $20 million fine.

And since the whole affair started over a tweet, either careless or intentionally misleading, Musk is required to comply with company oversight and pre-approval of anything he says or posts about Tesla, "in any format, including, but not limited to, posts on social media (e.g., Twitter), the Company’s website (e.g., the Company’s  blog), press releases, and investor calls."

Another $20mn will be paid by Tesla to settle claims it had failed to vet Musk's initial tweet.

DETAILS TO FOLLOW