Elon Musk resigns as Tesla chairman, but remains CEO

Elon Musk resigns as Tesla chairman, but remains CEO

Elon Musk resigns as Tesla chairman, but remains CEO

Tesla shares plunged last week after the SEC accused Musk of securities fraud over his now-infamous "funding secured" tweet last month, which falsely claimed he'd lined up backing to take Tesla private.

Neither Musk nor Tesla admitted or denied the SEC's findings as part of the settlement, which still must be approved by a court.

"As a result of Musk's false and misleading statements and material omissions", said the lawsuit, "investors who purchased Tesla stock in the period after the false and misleading statements but before accurate information was made known to the market were harmed". As the SEC states that they have to be independent, it'll mean Musk no longer has control over the company he founded - a rather symbolic unthroning.

Musk's tweets and the idea of taking the company private was clearly aimed at the "short-sellers" who have made Tesla the most targeted stock on the U.S. market, and created an industry in social media campaigns against the company and Musk himself.

Alongside Musk's change of interaction with Tesla, both he and the company need to pay a $20 million fine for the foible.

Aside from naming a new chairman, Tesla will also have to appoint two new, independent directors to its board as part of the SEC settlement.

The next challenge for Musk is proving he has the business savvy to steer Tesla into the promised land of profits. The SEC alleged that Musk knew the plan was built on a shaky foundation when he proposed it. Tesla's shares dipped 1 percent to $306.24 during Tuesday's midday trading after soaring Monday on the news of the SEC settlement. Under terms of the agreement, Musk also must give up his seat as chairman of the board of directors for at least three years.

In the last week of the quarter, we produced over 5,300 Model 3 vehicles, nearly all of which were dual motor, meaning that we achieved a production rate of more than 10,000 drive units per week.

After falling 14 percent on Friday, the stock rose 17 percent today, leaving the closely watched price at $310.70 at the close.

Former US Vice President Al Gore could be a good fit to replace Elon Musk as chairman, according to one longtime tech analyst.

"Our focus remains on the continued ramp of Model 3 production and delivering for our customers, shareholders and employees".

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