WASHINGTON (AP) — The Latest on Elon Musk’s settlement with U.S. regulators to remain at the company (all times local):
Under the settlement announced Saturday, Musk is giving up the chairman’s role but gets to remain as CEO. The complaint had sought his removal as chief executive as well.
Whoever becomes the new chairman of Tesla Motors will face the formidable task of reining in Elon Musk, the charismatic, visionary chief executive with an impulsive streak, while also helping Musk achieve his dream of turning Tesla into a profitable, mass-market producer of environmentally-friendly electric cars.
Musk is giving up the chairman’s role under a settlement announced Saturday with the Securities and Exchange Commission. Besides a new chairman, Tesla was also ordered to appoint two new, independent members to its board. A more assertive board could provide the kind of tighter oversight that many legal experts, and Tesla investors, say is overdue for a company of Tesla’s market value.
The settlement stemmed from a lawsuit the SEC filed charging Musk with misleading investors in August with a tweet that said he had “funding secured” for taking the company private.