The stock gained 16% on Aug. 2 after Musk apologized following Tesla's second-quarter earnings, and another 11% after his infamous going-private tweet Aug. 7, but dropped 8.9% on Aug. 17 following Musk's interview with the New York Times.
Coming under pressure from his lawyers and investors of Tesla, tech billionaire Elon Musk has agreed to step down as chairman of the company for three years and pay a $20 million fine in a deal with the United States stock market regulatory authority, Securities and Exchange Commission (SEC), to resolve securities fraud charges.
Neither Musk nor Tesla admitted or denied the SEC's findings as part of the settlement.
Tesla shares plunged around 14 percent on Friday, the day after the SEC charged Musk with misleading investors, and are down 30 percent since his August 7 tweet saying he was considering taking the company private at $420 a share.More news: Hazard enjoys being compared with the world’s best players
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From the beginning of this case, the SEC requested as a penalty that Elon Musk had left the position of chairman from the board of Tesla, something that has now been achieved.
Tesla shares are expected to rebound today after Elon Musk was forced to stand down as chairman in a boardroom shake-up at the electric carmaker. Tesla will also pay a $20 million fine.
The settlement requires that Tesla appoint two new independent directors and establish a committee of independent board members. "Funding secured." Later on, the SEC ruled that Musk never went through with his declaration and deal between the company and the Saudi sovereign wealth fund set to foot the bill on the buyout.
"The total package of remedies and relief announced today are specifically created to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors", said Stephanie Avakian, co-director of the SEC's Enforcement Division. The SEC filed fraud charges against Mr Musk...
Musk will stay on as company CEO but will relinquish his role as company chair for at least three years as part of the agreement, which is still subject to court approval. On Saturday, the SEC released an update announcing that Musk had accepted a settlement for his lawsuit.