Elon Musk Steps Down As Tesla Chairman But Remains CEO Per SEC Settlement

Elon Musk Steps Down As Tesla Chairman But Remains CEO Per SEC Settlement

The Securities and Exchange Commission (SEC) forced Musk and Tesla to pay $20 million each in a settlement that also forced Musk to step down as chairman. 

The SEC determined that a series of tweets that Musk put out on August 7th of this year adversely affected investor's financial interests. In their lawsuit filed, the SEC stated that by tweeting about financing to take Tesla private, Musk manipulated the worth of the company itself. The tweets were found to have no basis in fact. 

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms, including an obligation to oversee Musk’s communications with investors, and both will pay financial penalties,” Steven Peikin, co-director of the SEC’s Enforcement Division, said in a statement. “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders.”

The recent settlement isn't the only allegation of misconduct that Musk has found himself embroiled in recently.

During a podcast with Joe Rogan earlier this month, investors were shocked to see him smoking marijuana with the host. This has led several to question his stability as an industry leader.

Musk will be eligible to resume his role as chairman after three years, during which time I hope the pot smoking issue will be long forgotten.

He may be a little mercurial, but Elan Musk has done much for the evolution of several industries, not the least of which is the automotive field.

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Written By: Todd Hendrickson
Source: motortrend.com