Elon Musk to resign as Tesla Chairman but will remain CEO

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Tesla’s Elon Musk has agreed to step down as the Chairman of Tesla. He has been also asked to pay a $20 million fine in a deal to settle charges that were brought on him by the Securities and Exchange Commission (SEC) earlier this week.

But Musk will stay on as CEO as per an agreement that concluded the two-month long issue, though He won’t be able to seek re-election for three years either, as per the court filings.

This  announcement comes two days after the Securities and Exchange Commission (SEC) files a lawsuit against Elon Musk, claiming he misled investors with his tweets. On August 7, 2018, Musk tweeted “am considering taking Tesla private at $420. Funding secured.” The announcement caused the company’s stock to soar, but was based on a false claim. The SEC stated that no funding was secured in its lawsuit.

The petition further sought a ban on Musk from serving as a director of any publicly traded company. Responding to the SEC lawsuit, Elon Musk called it unjustified and said, “I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”

It’s not clear yet if the Department of Justice will file criminal charges against the Tesla co-founder. It is also yet to be determined if Musk’s action constitute to criminal charges.-Auto.ndtv.com

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