Elon Musk To Step Down As Tesla Chairman Post SEC Settlement
Though Musk continues to be the company's CEO, he will not be re-elected as chairman for another three years, the SEC directed in its settlement. The settlement comes in the wake of charges levelled against Musk for trying to mislead investors by tweeting that he had received financing for a deal to go private. The said tweet claimed that could take Tesla private at $420 per share andmdash; a substantial premium to its trading price at the time.
"The total package of remedies and relief announced are specifically designed 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.
Allegedly, several reports suggested that Musk had to settle with higher penalties as he had walked away from a settlement earlier which would have stripped him of some key leadership duties, but involved much smaller fines. The SEC had opened its investigation into the matter in August after Musk's tweet.
By Shourya Harwani October 02, 2018 at 05:52PM
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