Recently, Tesla CEO, of course, Elon Musk was charged with fraud and sued by the SEC, the US Securities and Exchange Commission, on suspicion of manipulating Tesla’s share price. However, according to the latest reports, the CEO of Tesla, the well-known car manufacturing company, of course, Elon Musk resigns as chairman of Telsa.
Elon Musk Resigns As Chairman Of Telsa
The CEO of Tesla, of course, Elon Musk’s Twitter communications have always been patchy and seemingly unreflected. The strong man of Tesla resorts to this social network to present novelty and to vent, leading sometimes to say things he should not say.
It was precisely his Twitter postings about his idea to remove Tesla from the stock market, which led him now to resign from the post of chairman of Tesla’s board of directors.
This is the result of an agreement that Elon Musk and Tesla made with the SEC, the Securities Exchange Commission, and is based on an investigation that was conducted where they sought to prove that the owner of Tesla had committed fraud by announcing that he wanted to withdraw Tesla from the stock market and buy all the shares of the company, already having investors ready to support it.
As a result of these publications, Tesla shares rose 11% on the stock exchange, prompting the US regulator to investigate the case. At stake was the idea that Elon Musk’s intention was merely speculative.
From the beginning of this case, the SEC requested as a penalty that Elon Musk had left the position of chairman from the board of Tesla, something that has now been achieved. According to the existing information, Elon Musk has 5 days to leave the post.
However, the CEO of Tesla, of course, Elon Musk may resume this position within 3 years and managed to remain as the CEO of Tesla. In addition to this punishment, Elon Musk and Tesla are required to pay a fine of $20 million each.
Curiously, and as one of the parties to the deal, Elon Musk has accepted that he can never admit or deny that he has committed fraud, which in practice means he can never publicly state that he has done nothing wrong.
It ends a case that began in August, shortly after the publications made by Elon Musk and that ended up not having any progress, and the company maintained its position in the stock market. So, what do you think about this? Simply share all your views and thoughts in the comment section below.