Elon Musk Steps Down as Tesla Chairman and the Firm’s Stock Rises

Elon Musk has “temporarily” stepped down as chairman of Tesla, according to globalnews.ca.

The decision comes as part of his settlement with the U.S. Securities and Exchange Commission, after being charged with securities fraud and deceiving investors.

The SEC settlement –which requires court approval- dictates that Musk gives up as Chairman of Tesla within 45 days, and stays as its CEO, in addition to having both Musk and Tesla pay $20 million in fine, according to CNBC’s Phil LeBeau video which was broadcast earlier today. LeBeau commented in his turn that the sum imposed is “nothing as for Musk”.

Musk is obliged as well not to seek reelection for three years, according to court filings.

The $20 million fine comes in settlement of claims regarding Musk’s tweets, which the company failed to “adequately police”, as per CNN.

A leaked court document informed that Musk accepted the deal “without admitting or denying the allegations of the complaint”.

Musk was charged by the government the last week, with making “false and misleading statements” to investors on his Twitter account, after he said he had secured funding to take the company private.

Investors welcomed in their turn the decision of dismissing Musk as Chairman and keeping him as CEO.

Tesla’s Shares Have Been Going Down Since the Tweet

Bloomberg TV spread a space to talk about the step, and reported that the settlement dictates also that Tesla must appoint “independent chairman”, and add “two new independent directors”.

The financial news TV showed in a video as well, an email of Musk’s it obtained, which disclosed Musk was exaggerating numbers as per the TV’s description.