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ELON MUSK resigns from TESLA under pressure from S.E.C. lawsuit

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
GOLD Site Supporter
In the last couple of days Musk was sued for FRAUD by the Securities & Exchange Commission and now word is out that he struck a deal with the SEC and was forced to resign as chairman of TESLA motor cars.

Many consider him a snake oil salesman. Others consider him a prophet.

https://techcrunch.com/2018/09/29/e...ign-as-tesla-chairman-in-settlement-with-sec/

Full article at the link above, but here are some of the basics:

Tesla CEO Elon Musk will step down as chairman of the electric automaker and pay a $20 million fine under a settlement reached with the U.S Securities and Exchange commission. Musk will remain CEO.

Musk will resign from his role as chairman of the Tesla board within 45 days of the agreement, which was filed Saturday. He has agreed to not seek reelection or accept an appointment as chairman for three years. An independent chairman will be appointed, under the settlement agreement.

Tesla will pay a separate $20 million penalty, according to the SEC. The SEC said the charge and fine against Tesla is for failing to require disclosure controls and procedures relating to Musk’s tweets.

Musk doesn’t have to admit or deny the SEC’s allegations as part of the agreement.

Tesla has also agreed to appoint two new independent directors to its board and establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications, according to the SEC. This likely means that Musk, who frequently turns to Twitter to unveils new products, features and updates on his multiple companies, will be more restricted moving forward. At least when it comes to his tweets about Tesla.

“The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders,” Steven Peikin, co-director of the SEC’s Enforcement Division said in a statement.

The agreement marks the beginning of a new era of corporate governance for Tesla, which some shareholders have argued is too tightly controlled by Musk and others closely aligned to him such as his brother Kimbal Musk. Investor and founding board member Steve Jurvetson is still on leave.

...
 

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
GOLD Site Supporter
And the $20 MILLION fine he has to pay will probably just be giving back some of the taxpayer dollars that he was given as grants and/or subsidies from the government. So its not like he actually paid the money out of his own pocket. Likely he paid it out of OUR pockets. It is UNLIKELY that even a penny of that will trickle back to us, its rightful owners.

Can't say it loud enough, TAXATION IS THEFT
 

road squawker

Active member
GOLD Site Supporter
Amazing how Tesla became the largest American auto manufacturer before they ever made one vehicle.

Gotta love those government subsidies.

Kinda like farmers and ethanol.
 

tiredretired

The Old Salt
SUPER Site Supporter
He lost my vote when he admitted to being a socialist. I hope his rockets fare better. Our boys are going to riding on them to the ISS.

As for Tesla, its been doomed for sometime now. Too many workers too little cars. Even if he survived that, when it came time in the future to retool for updated models, that would have finished him.
 

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
GOLD Site Supporter
Amazing how Tesla became the largest American auto manufacturer before they ever made one vehicle.

Gotta love those government subsidies.

Kinda like farmers and ethanol.

And this is the crux of the problem. The stock was absurdly valued, and even after dropping from the top, still is over priced. Subsides prop up the value artificially and and that will also be the downfall.
 
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