Elon Musk no longer Tesla chairman, keeps CEO title

Elon Musk no longer Tesla chairman, keeps CEO title

Elon Musk no longer Tesla chairman, keeps CEO title

The electric vehicle maker's shares sank last week after the US Securities and Exchange Commission accused Musk of securities fraud, opening up the prospect of a long fight that could have seen Tesla lose its leader, and undermined its ability to raise capital and increase production.

On Saturday, the SEC said that it also charged Tesla the same day "with failing to have required disclosure controls and procedures relating to Musk's tweets, a charge that Tesla has agreed to settle".

Tesla shareholders, Tesla fans, and Tesla customers all breathed a sigh of relief this week when it announced that founder and CEO Elon Musk had reached a settlement with U.S. regulators.

According to The Washington Post, the SEC had offered similar settlement terms a week prior to the lawsuit that Musk passionately declined, saying the "unjustified action" left him "deeply saddened and disappointed". The company will also have to keep an eye on Musk's conversations and communications with investors.

An expanded board and new chairman offers hope "a true check on Elon will emerge and there will be greater accountability" over Musk's statements and business targets, Spak added. Tesla also made 26,903 of its higher-priced vehicles, the Model S and Model X. The manufacturer plans combined Model S and Model X deliveries of 100,000 for the full year.

More news: Canada reaches 11th-hour NAFTA deal with U.S., Mexico

After falling 14 percent on Friday, the stock rose 17 percent today, leaving the closely watched price at $310.70 at the close.

Investors anxious that heralded a long-drawn out fight with the regulator that would see Tesla lose its talismanic leader, undermine its ability to raise capital and cripple operations as it ramps up production of its crucial Model 3 sedan. The SEC cited "significant market disruption" as the primary repercussion of Musk's loose lips, as well as questioning Tesla's dissemination of information.

Over the weekend, Musk emailed his staff to tell them to "ignore the distractions" and to claim that Tesla is "very close" to finally becoming profitable.

In response to a question asking whether he thought Tesla would 'make it as a vehicle company, ' Gore replied: 'Yes!

The board includes includes James Murdoch, son of Rupert, and an Australian businesswoman, Robyn Denholm, who is being touted as a possible successor to Musk as chair of the board.

Related news



[an error occurred while processing the directive]