Following the SEC Lawsuit, Musk To Quit As Tesla Chairman and Pay $20 Million

Tesla Motors is seeing one of the most important and impactful decisions in its history! Following the lawsuit filed by the Securities and Exchange Commission, Elon Musk has decided to quit his post as the chairman of Tesla Motors. Although he will be the Chief Operating Officer of the company, he will have to quit as a chairman. The deal with SEC also notes that Elon Musk cannot try for a reelection in the span of three years. As the deal comes to effect, Musk will have 45 days before he has to leave the office. The court document says that Musk accepted the deal.

Elon Musk, however, did not admit or deny the allegations raised by the agency, which has accused Musk on many charges. One of the serious issues was how his decisions and tweets have made things worse for a number of investors in the past. SEC has also asked Musk to pay a fine of $20 Million. In addition to this, the company will have to pay an amount of $20 Million, because Tesla could not control the tweets of Musk. It should be noted that the combined amount of $40 Million would be distributed to investors who had to face issues due to the tweets.

“I have always taken action in the best interests of truth, transparency, and investors,” said Musk. “Integrity is the most important value in my life and the facts will show I never compromised this in any way.” He also said that the lawsuit from SEC is unjustified and that he does not deserve to pay these fines. The SEC deal is also suggesting the creation of a specific board that would oversee Musk’s communication via social media and others. According to experts, the SEC does not want to remove Musk from the position of the CEO as the action is likely to impact Tesla shares even negatively.