Tesla and Musk will each pay $ 20 million to financial supervisors and the executive will actually have to leave the company's presidency. Musk, however, will remain as CEO of Tesla. Although difficult, the ruling will appeal to investors who were afraid of a long-running legal dispute that could affect the company's performance.
SEC of the Securities Exchance Commission is of the opinion that the messages that Musk published on Twitter in August that he wanted to privatize Tesla for $ 420 per share and that he even secured an investor, were misleading and did not contain any facts.
Analysts and investors are of the opinion that Musk's departure can now even strengthen Tesla: it is recalled that Elon has recently been filmed smoking, which resembles marijuana in an interview and waving a sword in a webcast.
Now, as part of the ruling, Tesla will have to elect an independent president, two independent directors and a committee to monitor Musk's communications. With the announcement of the SEC's decision, Tesla devalued seven billion dollars to 45.2 billion, BBC.
Ivan Feinseth of Tigress Financial Partners believes this is the best possible solution for everyone and that "the fact that you can stay as CEO is very important for the company."
The SEC has stipulated that Musk must resign from the presidency within 45 days and not return to the office for the next three years. Last Friday the news broke that Musk would even be willing to accept an agreement that provided for his departure and a symbolic fine, but that he decided to go on to the judicial battle. Now, a day later, the decision of the EC was known.
There is still no indication who will succeed the controversial summit in the presidency of Tesla, or what impact that decision will have on the performance of the company that has only recently reached the brand of 50,000 cars produced per week.
Tesla and Musk have not yet responded to this belief.