Looks like Elon’s mouth is finally catching up with him.
The SEC just forced him out as chairman of Tesla and imposed a $20 million dollar fine – not chump change, even for a billionaire.
Musk will be allowed to stay as CEO but must leave his role as chairman of the board within 45 days. He cannot seek re-election for three years, according to court filings.
He accepted the deal with the SEC “without admitting or denying the allegations of the complaint,” according to a court document.
The announcement from the SEC comes two days after the agency filed a lawsuit against Musk, claiming he misled investors. The suit centers on tweets Musk sent on August 7 in which he said he had secured funding to take Tesla private at $420 a share, causing the company’s stock to soar. He had not secured the funding, the SEC said.
Musk called the SEC’s suit “unjustified.”
“I have always taken action in the best interests of truth, transparency and investors,” he said. “Integrity is the most important value in my life and the facts will show I never compromised this in any way.”
The SEC’s lawsuit sought to ban Musk from serving as an officer or director of any publicly traded company.