Musk Agrees to resign as Tesla Chairman under SEC Settlement

Tesla chairman Elon Musk has agreed to step down as Chairman of the company and pay $20 million to financial regulators in a settlement with SEC. Musk, however, will still remain the CEO of the organization.

This news comes as a relief for the investors that had anticipated lengthy legal fights, aggravating the decline of the loss-making electric car manufacturing firm.

The entire Tesla episode came to limelight when SEC accused Musk of misleading investors with tweets about making Tesla private, thereby accumulating funding.

“The prompt resolution of this matter on the agreed terms is in the best interests of our markets and our investors, including the shareholders of Tesla,” SEC Chairman Jay Clayton said in a statement.