Tesla Chief Executive Settles SEC Charges For Making False Public Statements

Tesla's Chief Executive Officer agreed to settle SEC charges for making a series of allegedly false and misleading statements on Twitter regarding a potential transaction to take the company private. Tesla also agreed to settle SEC charges for deficient internal controls and procedures violations relating to the tweet.

The settlements require Tesla Chief Executive Elon Musk to: (i) pay $20 million, (ii) step down as Chair of the Board of Tesla and agree to not seek reelection as Chair for three years, and (iii) comply with new Tesla procedures for any future communications in connection with Tesla. Tesla will, among other things, be required to: (i) pay $20 million, (ii) appoint two new independent directors to its Board, (iii) establish a new committee of independent directors, and (iv) put in place additional controls to oversee Mr. Musk's communications.