Report: Elon Musk will no longer be Tesla's chairman

The end of an era?
by Drei Laurel | Oct 1, 2018
PHOTO: Tesla

It was a fun ride while it lasted, but Elon Musk's stint as the electric car industry's most popular, most dynamic, and—at times—most polarizing figure may be coming to an end.

According to a report by CNN, Musk will be stepping down as chairman of Tesla and paying a $20-million fine as part of a settlement with the US Securities and Exchange Commission (SEC).

In addition to Musk stepping down, the company will have to pay an additional $20 million for his controversial tweet on August 7, which claimed he had secured funding to take Tesla private. Two independent directors will also be added, and a committee to "oversee Musk's communications" will be established, CNN reports.

Despite the settlement, a spokesperson for Tesla has said that Musk will remain a member of its board.

SEC enforcement division veteran Jay Dubow called the agency's move to allow Musk to remain a chief executive despite stepping down as chairman "unusual."

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"It's surprising considering the conduct at issue, if [the SEC] really thought it was egregious," Dubow said. "The CEO is certainly more involved than the chairman in day-to-day operations."

He added: "My guess is that it's still possible the DOJ will pursue something, but...it's more likely than not that the DOJ chooses not to pursue this."

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So, is this the end of an era? We just hope the next-gen Tesla Roadster manages to push through. Good luck, Elon.

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PHOTO: Tesla
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