Musk Settles With The SEC: Will Step Down As Tesla Chairman For 3 Years, Pay $20MM Fine, Stay As CEO
Just one day after the SEC sued Elon Musk for securities fraud, in a move that shocked many who were skeptical the US regulator would do anything more than slap a few wrists - an action which it took only after it emerged that Musk had turned down a settlement offer from the SEC in the last minute - Musk, having seen TSLA stock tank the most in three years on Friday, changed his mind once again, and agreed to settle the case.
According to a settlement filing posted on the case docket on September 29, the SEC settlement is on almost identical terms to the deal he had rejected as recently as Thursday morning: it will require Musk to step down for 3 years as Chairman (up from two years in the 1st deal), pay a $20 million fine, comply with Tesla's mandatory procedures for how to tweet going forward, however it means he will be able to continue as the company's CEO and return as Chairman after 3 short years.
As part of the deal, Musk will also neither admit nor deny guilt, effectively confirming that all those who were skeptical of the SEC's regulatory interests, were correct after all as the settlement now makes any potential criminal case far more complicated.
And, we'll repeat it because it bears repeating, having cost ordinary investors billions of dollars with his manipulative, fraudulent tweet, all the SEC asks is for Musk to make sure he preclears all his future tweets that "contain information material to the Company." One couldn't make this up.
https://www.zerohedge.com/news/2018-09-29/musk-settles-sec-will-step-down-tesla-chairman-3-years-pay-20mm-fine