Thursday, November 26, 2020

Tag: Booted as Tesla Chairman. SEC Forces Tesla to Control his Lie-Tweets

Musk Settles with SEC, Booted as Tesla Chairman. SEC Forces Tesla to Control his Lie-Tweets

by Wolf Richter, Wolf Street:

Not a slap on the wrist, but not a summary execution either.

Tesla CEO and Chairman Elon Musk settled the fraud charges that the SEC had brought against him over his blatant lies he tweeted in early August about taking Tesla private at $420 a share, “Funding secured,” only to recant a couple of weeks later. As part of the deal, which the SEC announced today and which is still subject to court approval, Musk has to – I almost wrote “quit tweeting while high” – do the following:

  • Step down as Chairman of Tesla, to be replaced by an independent chairman. Musk will be ineligible to be chairman for three years;
  • Pay $20 million penalty.