Musk agreed Saturday to step down after a lawsuit by the U.S Securities and Exchange Commission was settled.
Written by Sammy Abdo
As part of the settlement, Musk and Tesla agreed to pay $20 million each to the SEC. The lawsuit was brought about when Musk tweeted he would take the company private and had the funding secured back in August. This created chaos in the market and hurt investors as Musk's tweet was not true. Since the announcement Monday of the agreement, Tesla stock has recouped all losses since Friday when regulators announced the charges against Musk. Though he was asked to step down as chairman, Musk is still allowed to be part of Tesla as its CEO. For investors, there was concern over Musk's actions over the past few months after he smoked marijuana as part of a podcast. Investors needed reassurance that Musk will be kept under control. However, as part of the SEC settlement, Musk's tweets will be vetted by the company before they are released. With their losses recouped, the company finding new leadership and Musk proclaiming the company will soon be profitable in an email to staff, investors should not be concerned about Tesla stock.
