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Elon Musk steps down as Tesla Chairman after Controversial Tweet

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Elon Musk

Billionaire businessman Elon Musk has stepped down as the Chairman of Tesla following a tweet where he claimed he has the funding and investor support to buy the publicly-traded company.

The Securities and Exchange Commission (SEC) sued the billionaire and all parties reached an agreement on Saturday night.

In the agreement, Musk will resign as Chairman but will remain CEO and also a member of the board. He’ll also not be eligible to be elected into the Chairman position for three years, Time reports.

Tesla must also hire an independent chairman to oversee the company.

Musk and Tesla were also fined $20million each.

Photo Credit: Mark Brake/Getty Images

4 Comments

  1. Amaka

    October 1, 2018 at 9:05 am

    Wow. Just because of a tweet?

    • Kkay

      October 1, 2018 at 10:52 am

      ……..a tweet that it’s timing influenced trading. Plus Elon had not secured any private investors or discussed any plans to go private with his board.

    • Ephi

      October 1, 2018 at 1:06 pm

      It’s not just a tweet. Those kinds of statements have major effects on the shares of a company. There are rules and regulations for those involved in running publicly traded companies.

  2. by_stander

    October 1, 2018 at 5:26 pm

    Well SEC had a point – i really thought he had actually secured funding.

    Agreed publicly traded companies PLC are completely different from private companies LTD.

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