Musk out as Tesla Chair, still CEO – The Wall Street Journal
DUBLIN – The Elon Musk sage took yet another twist this weekend. After initially rejecting a deal with the SEC and opting for a full trial, Tesla founder, Chairman, and CEO Elon Musk did a 180 on Saturday night. He has accepted a deal with the SEC that will see him step down from his role of chairman at the struggling automaker. Tesla will also have to appoint two new independent board members – a move that will hopefully strengthen the board's ability to rein in the volatile leader. Both Musk and Tesla will also pay $20 million fines. As strange as it may sound, this is actually a good deal for Musk, who was facing the possibility of being banned from serving as an officer at a public company. If the SEC had won its case, Musk would have had to step down from his role as CEO too. The trial would also have been against Musk alone, in his private capacity, and not Tesla, raising the spectre of some very scary fines for the billionaire. The Tesla share price barely budged on the news, although it may rise in trading on Monday. – Felicity Duncan
By Tim Higgins and Dave Michaels
(The Wall Street Journal) Elon Musk reached a settlement with the Securities and Exchange Commission that allows him to remain chief executive of Tesla Inc.but requires that he step aside from the chairman role for three years.
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