Musk out as Tesla chair, re­mains CEO in $40M SEC set­tle­ment

The Oklahoman (Sunday) - - NEWS - BY MICHAEL LIEDTKE

SAN FRAN­CISCO — Tesla and its CEO Elon Musk have agreed to pay a to­tal of $40 mil­lion and make a se­ries of con­ces­sions to set­tle a gov­ern­ment law­suit al­leg­ing Musk duped in­vestors with mis­lead­ing state­ments about a pro­posed buy­out of the com­pany.

The set­tle­ment with the Se­cu­ri­ties and Ex­change Com­mis­sion al­lows Musk to re­main CEO of the elec­tric car com­pany but re­quires him to re­lin­quish his role as chair­man for at least three years.

Tesla must hire an in­de­pen­dent chair­man to over­see the com­pany, some­thing that should please a num­ber of share­hold­ers who have crit­i­cized Tesla’s board for be­ing too be­holden to Musk.

The deal was an­nounced Satur­day, just two days af­ter SEC filed its case seek­ing to oust Musk as CEO.

Musk, who has an es­ti­mated $20 bil­lion for­tune, and Tesla, a com­pany that ended June with $2.2 bil­lion in cash, each are pay­ing $20 mil­lion to re­solve the case, which stemmed from a tweet Musk sent on Aug. 7 in­di­cat­ing he had the fi­nanc­ing in place to take Tesla pri­vate at a price of $420 per share.

“A reck­less tweet cost a lot of money — the $20-mil­lion tweet,” said Michelle Krebs, ex­ec­u­tive an­a­lyst at Au­to­trader.

Elon Musk

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