Elon Musk Steps Down as Tesla’s Chairman in Settlement With S.E.C. Over Go-Private Tweet
Elon Musk, under pressure from his lawyers and investors of Tesla, the company he co-founded, reached a deal with the Securities and Exchange Commission on Saturday to resolve securities fraud charges. The settlement will force Mr. Musk to step aside as chairman for three years and pay a $20 million fine.
The S.E.C. announced the deal two days after it sued Mr. Musk in federal court for misleading investors over his post on Twitter last month that he had “funding secured” for a buyout of the electric-car company at $420 a share.
The deal with the S.E.C. will allow him to remain as chief executive, something he could have jeopardized if he had gone to battle with the agency.
It is not clear why Mr. Musk changed his mind so quickly.
People familiar with the situation, who were not authorized to speak publicly on the matter, said lawyers for Mr. Musk and the company moved to reopen the talks with the S.E.C. on Friday. During that time, one of Tesla’s lawyers became instrumental in securing a deal with the S.E.C., according to a person familiar with the negotiations.
This is dummy text. It is not meant to be read. Accordingly, it is difficult to figure out when to end it. But then, this is dummy text. It is not meant to be read. Period.
ConversionConversion EmoticonEmoticon