Elon Musk to Step Down as Tesla Chairman and Pay $20 Million Fine


Source: Reuters

Elon Musk has agreed to a deal with the SEC and will step down as chairman of Tesla and pay a fine of $20 million.

Last week news broke the SEC was charging Musk with securities fraud stemming from a tweet he sent on August 7th saying he had secured funding to take Tesla private at $420 per share. The SEC alleges Musk had not secured the funding.

Additionally, Tesla as a company will pay a fine of $20 million to settle claims they had “failed to adequately police Musk’s tweet,” according to CNN.

Musk agreed to the settlement “without admitting or denying the allegations of the complaint” according to court docs. Musk will be allowed to stay on as CEO of Tesla, but must resign as chairman of the board within 45 days.

According to a press release issued by the SEC, “The $40 million in penalties will be distributed to harmed investors under a court-approved process.”