Elon Musk settles with the SEC and agrees to pay $20 million fine and step down as company chairman

The lawsuit involving Elon Musk and the SEC has come to a swift and somewhat unceremonious end. Amid speculation that Musk might potentially have to leave Tesla altogether, the SEC earlier today revealed they have reached a settlement agreement with Musk. As for the specific terms of the deal, Musk agreed to pay a $20 million fine with Tesla agreeing to pay an additional $20 million in fines. Additionally, Tesla's board will bring on two new independent directors, with the ultimate goal of course being to keep some of Musk's more controversial inclinations at bay.

Notably, Musk will remain on board as Tesla CEO, though he will no longer be chairman of the company. All in all, it's fair to say that Tesla and Musk were smart to settle with the SEC and put this bizarre saga in the rear view. If you recall, Musk sparked an avalanche of controversy when he fired off a tweet in August claiming that funding had been secured to take Tesla private at $420 a share. Subsequently, it emerged that Musk had not in fact secured funding from any party at all.

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Elon Musk settles with the SEC and agrees to pay $20 million fine and step down as company chairman originally appeared on BGR.com on Sat, 29 Sep 2018 at 19:53:08 EDT. Please see our terms for use of feeds.

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