UPDATES: Elon Musk Agrees to Pay $20 Million and Quit as Tesla Chairman in Deal with SEC
In a major development, Elon Musk, the CEO of Tesla, has agreed to pay $20 million and step down as the chairman of the company’s board in a deal with the Securities and Exchange Commission (SEC). This decision comes after the SEC filed a lawsuit against Musk for making false and misleading statements on Twitter about taking Tesla private.
The settlement, which was announced on Saturday, September 29th, puts an end to a tumultuous period for Tesla and its shareholders. The company’s stock price has been on a rollercoaster ride since Musk’s tweet about taking Tesla private at $420 per share, causing confusion and chaos in the market.
What Led to the Settlement?
The SEC’s lawsuit alleged that Musk’s tweet about taking Tesla private was “false and misleading” and that he had not secured the necessary funding to do so. This caused a significant disruption in the market and led to an investigation by the SEC.
In the settlement, Musk neither admitted nor denied the allegations made.
Source: CNN
