There’s been a lot going around Elon Musk from past months. His controversial tweets, about making Tesla private. Due to his recent tweets claiming to have had the funding and investor support to buy out stockholders at $420 a share. Fraud charges alleged by the U.S. over his claims about taking the company private.

Elon Musk gives up Tesla chairman Role After SEC Settlement Img credit-Dailymail
Elon Musk gives up Tesla chairman Role After SEC Settlement Img credit-Dailymail

As a result, Musk will resign as a Chairman within 45 days and can’t be re-elected to the role for 3 years as stated by Securities and Exchange Commission(SEC). And also pay a fine of $20 million. Tesla and Musk will pay $20 million each making it total fine of $40 million. Although Musk will retain the role of CEO in Tesla.

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According to SEC charges, Musk “knew that the potential transaction was uncertain and subject to numerous contingencies,” and the Tesla chairman and CEO had “not discussed specific deal terms, including price, with any potential financing partners, and his statements about the possible transaction lacked an adequate basis in fact.”

Elon Musk gives up Tesla chairman Role After SEC Settlement
Elon Musk gives up Tesla chairman Role After SEC Settlement

After this Tesla will appoint a new independent Chairman and two independent directors to its board. And “establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications.”

SEC says Musk’s “funding secured” tweet caused Tesla stock prices to rise by more than six percent that day, with prices falling dramatically after the agency’s actions against Musk were announced. After the announcement, Tesla shares went down 14 percent on Friday, the biggest drop in almost five years.

Elon Musk gives up Tesla chairman Role After SEC Settlement
Elon Musk gives up Tesla chairman Role After SEC Settlement

Elon Musk is the face of Tesla. So whoever is gonna be the new Chairman has a lot of work to do be at par with Elon and his connection with people. Still, Musk is not all out from Tesla. In a typical case, the CEO is a high-priced employee” of the board, Gordon said. “Musk will still be more powerful than the board chair.”

Musk will still continue to be the Public face of Tesla, Space X and other projects such as his tunnel venture, the Boring Co, to his nearly 23 million followers.

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