Musk and SEC settled in keeping the position of Tesla CEO but quit the Chairman

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“Elon Musk announced on Twitter in August that it intends to privatize Tesla with $72 billion to further accelerate the technology development process and ensure that it is not “constrained” by the board of directors and shareholders. This has caused SEC’s Note and in this case, Musk has been accused of securities fraud. Musk and the Securities and Exchange Commission finally reached a settlement now.”

The US Securities and Exchange Commission (SEC) accused Elon Musk involving securities fraud and finally got results. Musk will quit the chairman of Tesla and pay $20 million in fines. Directors and other conditions are settled with the SEC.

Although Elon Musk will remain the CEO of Tesla, under the settlement agreement, he will officially resign from Tesla’s chairmanship within 45 days and will not be allowed to return to the position within three years. Moreover, the two new independent directors will be additionally responsible for “communicating” with Elon Musk, controlling Elon Musk’s words and deeds to prevent him from posting misleading news. According to reports, the original SEC was to directly ban Elon Musk from being a director and executive of any other listed company.

Elon Musk’s recent series of ridiculous behaviour began in the early August. He announced on Twitter that he intends to privatize Tesla with 72 billion to further accelerate the technology development process and ensure that it is not “constrained” by the board of directors and shareholders. This move has caused a lot of discussion in various circles, and it is thought that it may be a speculation topic to promote the “share price.”

However, Elon Musk later denied the statement, which was considered by the SEC to be spreading fake facts and misleading investors. In early September, Elon Musk further publicized marijuana on live broadcasts, while major executives such as Dave Morton and Chief of Staff Gaby Toledano also left.

Anyway, Elon Musk finally saved his position as CEO. But this series of storms may justify Buffett’s comment on him: “He may be a good entrepreneur, but with innovation alone is never enough to be a good business operator. Entrepreneurship and management are very different challenges. .”

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