As reported earlier, Elon Musk was in deep trouble and had to resign to make a settlement with the Securities and Exchange Commission. Guess what, this just happened! Tendering the resignation will be accompanied by $40 million fine, which Tesla and Elon Musk will share 50-50.
According to the settlement, Tesla and Elon Musk will both pay $20 million each while Musk will step down as Chairman for at least three years. This means Tesla will have a new Chairman soon.
The $40 million fine will be shared with investors; however, the court has not issued any directive about it yet. Tesla still did not say a word about this settlement, however, Steven Peikin, co-director of the SEC’s enforcement division said, “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders.”
Musk’s misery is not over yet. He may face interrogation by the U.S. Department of Justice.