Elon Musk steps down as Tesla Chairman after Controversial Tweet

Article Image Elon Musk Resigns as Chairman Order to Pay $20 Million Fine

SEC Lawsuit Against Musk Wiped $7.3 Billion From Tesla’s Market Value

"As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla's board will adopt important reforms -including an obligation to oversee Musk's communications with investors-and both will pay financial penalties", Steven Peikin, Co-Director of the SEC's Enforcement Division, said in the SEC statement.

Shares of Tesla jumped almost 16% today after chief executive Elon Musk settled with the US Securities and Exchange Commission (SEC) over charges of misleading investors, heading off moves to force him out.

This is only the midpoint of his Musk-sational 2018 narrative.

Besides the settlement news, Tesla has another milestone this week. Monday's gains erased Friday's 14 percent plunge after the SEC filed its lawsuit late on Thursday.

But, like any responsible parent, the SEC doesn't give a sh*t if Elon likes them or not.

The surge of more than 16 percent in shares before the U.S. market opening on Monday comes after Tesla's stock plummeted 14 percent on Friday, accounting for billions of dollars in losses.

The SEC charged Tesla with failing to have required disclosure controls and procedures for Musk's tweets.

Yes, Musk is a highly intelligent and influential individual, but it's clear the guy needs a nap.

Musk invited wrath in August when he falsely claimed on Twitter that he had secured funds for a multi-billion dollar buyout of Tesla, leading its share price to swell and creating huge losses for "short-selling" investors who had bet against the firm.

The SEC announced the deal on Saturday - two days after it sued Musk in federal court for misleading investors over his post on Twitter last month that he was considering taking Tesla into private ownership at $420 a share.

Many see the forced changes as being positive for Tesla, partly because the mercurial Musk will now have someone to answer to, and partly because his reduced role may allow the chronically overworked CEO to focus more. Later in the weekend, he added that "we are very close to achieving profitability and proving the naysayers wrong, but to be certain, we must execute really well" on Sunday.

Initially, Musk was ready to accept SEC's proposed settlement that stipulated he would step down as chairman for two years and pay between $5-10 million as a fine.

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