Elon Musk Resigns as Tesla Chair, Will Pay $20M

The CEO settles with the Securities and Exchange Commission
By Neal Colgrass,  Newser Staff
Posted Sep 29, 2018 4:53 PM CDT
Elon Musk Resigns as Tesla Chair, Will Pay $20M
SpaceX founder and chief executive Elon Musk speaks after announcing Japanese billionaire Yusaku Maezawa as the first private passenger on a trip around the moon, Monday, Sept. 17, 2018, in Hawthorne, Calif.   (AP Photo/Chris Carlson)

In a settlement with the SEC, Tesla CEO Elon Musk has agreed to resign as chairman within 45 days and pay a $20 million fine—but will remain chief executive, the Washington Post reports. The SEC was suing Tesla's founder over an August tweet that said he was "considering taking Tesla private at $420. Funding secured." But in court documents the SEC said Musk hadn't even discussed "key deal terms including price, with any potential funding source," and "made false and misleading statements." Musk has also agreed to name two new board directors. Per TechCrunch, Musk only agrees he won't run for chairman for the next three years. (Read more about the SEC's lawsuit.)

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