“Elon Musk will relinquish the role of Tesla Inc. chairman and split a $40 million penalty with the electric-car maker to settle fraud charges brought by the U.S. over his tweeted claims about taking the company private,” Dana Hull reports for Bloomberg. “Musk, 47, will get to keep his job as chief executive officer but must resign as chairman within 45 days and can’t be re-elected to the role for three years, the Securities and Exchange Commission said Saturday.”
“Neither Tesla nor Musk admitted wrongdoing under the settlement, which was reached two days after the SEC sued the billionaire over his tweeted claims to have had the funding and investor support to buy out stockholders at $420 a share,” Hull reports. “The settlement requires that Tesla appoint two new independent directors and establish a committee of independent board members.”
Read more in the full article here.
MacDailyNews Take: $40 million and loss of Chairmanship is an admission of wrongdoing, regardless of the legalese bullshit.
In other words: If Musk did nothing wrong, he’d still be Chairman, he and Tesla wouldn’t each be $20 million lighter in the wallet (not that they’ll notice), and the company wouldn’t be appointing two new independent directors and establishing a committee of independent board members.
Tweets can be mighty expensive.
U.S. SEC charges Tesla CEO Elon Musk with fraud – September 27, 2018
Tesla shares crash after Elon Musk smokes pot on live web show, exhibits other bizarre behavior – September 8, 2016
Apple hired scores of ex-Tesla employees this year, and not just for its car project – August 24, 2018
Tesla sinks on concerns over CEO Elon Musk’s erratic behavior – August 17, 2018
Doug Field, former Tesla engineering chief, returns to Apple – August 10, 2018