As per the deal with the US Securities and Exchange Commission (SEC) to settle the security fraud charges, Elon Musk will be resigning from his role as chairman Tesla and will have to pay a fine of $20 million. The decision was taken on 27th September 2018.
The SEC, in a complaint to the court, claimed that Elon Musk has failed to abide by the anti-fraud provisions of the federal securities laws.
As part of the settlement, he will remain as the Chief Executive Officer, but can’t take the seat as the chairman for three years.
Read More: Elon Musk thinking to take Tesla private
It all started in August 2018, when Musk tweeted to buy Tesla at $420 per share. Moreover, Tesla also has to pay a fine of $20 million, according to the SEC. Tesla will now be appointing two new independent directors to its board.
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
Musk showing his disappointment on the fraud case said:
“This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”
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