After being investigated by the SEC regarding his tweets about taking Tesla private, Elon Musk has been forced to resign as Tesla’s Chairman amid the securities fraud.
In august, he tweeted that he had secured funding to take Tesla private at $420 per share. The Securities and Exchange Commission (SEC) however stated that Elon had made no such deal, and that this was “false and misleading”.
“In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source,” the regulator said.
This news came as a surprise to even senior Tesla management and employees who knew nothing about the plans to take Tesla private.
It was first expected that Musk would step down from being a board member for three years, but he has reached a deal with the SEC to resign as Chairman while an independent replacement will be found. He will however remain as Tesla CEO and will have say over the day-to-day running of the company. But this change must have come as a blow to Musk.
Especially as he’s also been fined $20 million fine on top of the already stated.
Many business analysts have stated that he’s gotten off lightly, especially as after three years he will more than likely return as Chairman once again. For the time being, maybe Musk should stay away from the limelight.