After Lawsuit With Government, Elon Musk Resigns As Chairman
October 5th, 2018
Last week, Elon Musk was sued by the SEC for fraud. The Securities and Exchange Commission filed a lawsuit against Tesla CEO Elon Musk for alleged securities fraud, calling his previous tweets about having the “funding secured” to take Tesla private a “series of false and misleading statements.” The SEC alleged that Elon Musk chose a $420 price for possibly taking Tesla private because it is a marijuana culture reference that would "amuse" his girlfriend. However, Musk settled instead of going to court and has been ordered to pay a $20 million fine and resign as Tesla's board chairman for a minimum of 3 years. He will, however, keep his title as CEO. Tesla must also pay an additional $20 million fine for failing to censor Musk's tweet.