Musk, Tesla settle with SEC, to pay $40m in fines
News & Trends •
the u.s. securities and exchange commission said on saturday that car-maker tesla and chief executive elon musk have agreed to pay 20 million each under a settlement that will also see the billionaire step down as chairman after a tumultuous two months for the company1 but musk who is synonymous with the tesla brand will remain as chief executive under the settlement over tweets he posted on aug. 7 about taking the company private the sec said1 musk is now required to step down as chairman of tesla within 45 days and he is not permitted to be re-elected to the post for three years. tesla is required to appoint two new independent directors to its board1 saturdays settlement saw the sec pull back from its demand that musk be barred from running tesla a sanction that many investors said would be disastrous for the loss-making electric carmaker1 the sec charged tesla with failing to have required disclosure controls and procedures for musks tweets. the sec said the company had no way to determine if his tweets contained information that must be disclosed in corporate filings or if they contained complete and accurate information1 neither musk nor tesla admitted or denied the secs findings as part of the settlement. tesla did not immediately respond to a request for comment and musk could not immediately be reached for comment1