Business

Tesla Co-Founder Elon Musk To Step Down As Chairman Over Fraud Charges

JAVED SAIFI | 0
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| September 30 , 2018 , 12:15 IST

Tesla co-founder Elon Musk to step down as Chairman over misleading the company’s investors via a tweet on August 7 that Tesla will become a private company.

In the fraud settlement Musk and Tesla also fined with a $20 million each. Musk will leave chairman position in next 45 days but will remain on the post of CEO.

The tweet of Musk was "Am considering taking Tesla private at $420. Funding secured" that later denied by the Musk with "it would be better for Tesla to remain a public company than private," barely weeks after he floated the idea of going private.

Also Read: Tesla CEO Elon Musk Charged With Securities Fraud By US Regulators Over 'Misleading' Tweet

Finding that tweet of Musk as a misleading statement, the US financial regulator Securities and Exchange Commission (SEC) filed a legal suit against Musk and Tesla on Thursday and charged Musk and the company with securities fraud.

The SEC said that Musk had misled investors last month in a series of tweets about taking the electric car company Tesla private.

According to reports, Musk had accepted the deal with the SEC "without admitting or denying the allegations of the complaint", according to a court document.

The tweet of Musk had resulted in a brief spike in Tesla's share price.