Elon Musk fined $20 million, to resign as Tesla Chairman, but will remain CEO
Washington, Sep 30: Elon Musk has reached a settlement with Securities and Exchange Commission (SEC) over fraud charges, as a result of which he will step down from the Chairman post of Tesla. However, Musk will continue to remain the CEO of the electric car making company.
He will also have to pay $20 million to financial regulators.
The S.E.C. announced the deal two days after it sued Mr. Musk in federal court for misleading investors over his post on Twitter last month that he had "funding secured" for a buyout of the electric-car company at $420 a share.
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The last two months have been tumultuous for the company.
Musk, who is deeply involved in the company's product design and technological strategy, has invited trouble over his volatile behavior.
He smoked marijuana on a live-podcast on the same day recently-appointed accounting chief of Tesla left.
Musk also called Vernon Unsworth, the cave-diver who rescued Thai boys, a paedophile and then wondered why wasn't he sued yet. He was sued.