Words sentences that are offensive

[rooster59]

Musk to resign as Tesla chairman, remain as CEO in SEC settlement

By Michelle Price and Alexandria Sage

 

FILE PHOTO: Tesla Chief Executive Elon Musk attends a forum on startups in Hong Kong, China January 26, 2016. REUTERS/Bobby Yip/File Photo

 

WASHINGTON/SAN FRANCISCO (Reuters) - Tesla and Elon Musk have agreed to pay $20 million each to financial regulators and the billionaire will step down as the company's chairman but remain as chief executive, under a settlement that caps a tumultuous two months for the car-maker.

 

The securities fraud agreement, announced by the Securities and Exchange Commission (SEC) on Saturday, will come as a relief to investors, who had worried that a lengthy legal fight would only further hurt the loss-making electric car company.

 

The SEC said Musk, 47, misled investors with tweets on Aug. 7 in which he said he was considering taking Tesla private and had secured funding.

 

The regulator had alleged in a lawsuit on Thursday that the tweets had no basis in fact, and said the market chaos that ensued hurt investors.

 

The SEC charges against Musk on Friday shaved about $7 billion off high-flying Tesla, knocking its market value to $45.2 billion on Friday, below General Motors Co's $47.5 billion.

 

In the settlement, the agency pulled back from its demand that Musk, who is synonymous with the Tesla brand, be barred from running Tesla, a sanction that many investors said would be disastrous.

 

“I think this is the best possible outcome for everyone involved” said Ivan Feinseth of Tigress Financial Partners, who rates Tesla 'neutral', who added the SEC's penalty was only a slap on the wrist for Musk.

 

“The fact that he can remain CEO is very important for the company."

 

Neither Musk nor Tesla admitted or denied the SEC's findings as part of the settlement. Tesla and Musk did not immediately respond to requests for comment.

 

Investors and corporate governance experts said on Saturday that the agreement could strengthen Tesla, which has been bruised by Musk's recent volatile behavior. He was filmed smoking marijuana and wielding a sword on a webcast this month just hours before Tesla said its recently-appointed accounting chief would leave.

 

The entrepreneur had been directly involved in almost every detail of Tesla's product design and technology strategy, and drove the company's employees to extraordinary achievements - much as another Silicon Valley chief executive, Steve Jobs, did at Apple Inc.

 

Musk is now required to step down as chairman of Tesla within 45 days, and he is not permitted to be re-elected to the post for three years. Tesla is required to appoint two new independent directors to its board, a move Feinseth should strengthen the company.

 

The SEC charged Tesla with failing to have required disclosure controls and procedures for Musk's tweets. The SEC said the company had no way to determine if his tweets contained information that must be disclosed in corporate filings, or if they contained complete and accurate information.

 

Musk walked away at the last minute from an earlier settlement with the SEC that would have required him to give up key leadership roles at the company for two years and pay a nominal fine, according to media reports on Friday.

 

Investors said on Friday that it has been a big mistake for Musk to turn down that settlement, especially at a time when the company has been pushing hard to meet production targets.

 

The settlement tasks the Tesla board, which many critics have accused of failing to rein in Musk, with the tricky challenge of finding an independent chairman who is able to work closely with the often emotional and unpredictable chief executive.

 

Musk, who has often turned to Twitter to promote Tesla and confront critics, said on Thursday that the SEC's actions were unjustified. Tesla shares jumped after his Aug. 7 tweets, a blow to short-sellers betting on the stock's decline.

 

As CEO, Musk had gained legions of fans for his bold approach to business and technology. He used his Twitter account to promote the achievements of Tesla, his rocket launch company SpaceX, and other projects such as his tunnel venture, the Boring Co, to his nearly 23 million followers.

 

 

-- © Copyright Reuters 2018-09-30

[Samui Bodoh]

"...I think this is the best possible outcome for everyone involved..."

 

I agree wholeheartedly with the quoted statement above.

 

Musk does seem like a bit of a weirdo (to use the technical term) and perhaps it is a good thing not to have the weirdo responsible for/burdened with the intricate, boring details of a large company's operations.

 

That said, there are few in the our modern times that can claim the title of "Genius", but after PayPal, Tesla and Space X. I think Musk deserves it. Further, add in advances in batteries, the hyperloop, and who knows what else and we have a budding Edison or Tesla in the making.

 

Yes, find some corporate technical weenie to run the operations at Musk's companies, but free Elon up to let his imagination soar; great things have already occurred, and who knows what is on the horizon.

 

Go Elon Go!

 

[Cadbury]

This was all very predictable going by Musk's erratic behaviour in recent times. The man needs psychiatric help.

How much longer Tesla will survive is anybody's guess. It is burning cash like there is no tomorrow. Read this Bloomberg article.

https://www.bloomberg.com/graphics/2018-tesla-burns-cash/?utm_source=ifttt

[stevemac]

"...I think this is the best possible outcome for everyone involved..."
 
I agree wholeheartedly with the quoted statement above.
 
Musk does seem like a bit of a weirdo (to use the technical term) and perhaps it is a good thing not to have the weirdo responsible for/burdened with the intricate, boring details of a large company's operations.
 
That said, there are few in the our modern times that can claim the title of "Genius", but after PayPal, Tesla and Space X. I think Musk deserves it. Further, add in advances in batteries, the hyperloop, and who knows what else and we have a budding Edison or Tesla in the making.
 
Yes, find some corporate technical weenie to run the operations at Musk's companies, but free Elon up to let his imagination soar; great things have already occurred, and who knows what is on the horizon.
 
Go Elon Go!
 

I agree completely. He is a visionary genius but a maverick at the same time. It needed a solution which will not stifle his talents whilst controlling his more erratic traits.

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[atyclb]

good news this will free time up for him to continue medical research and perfect a capsule to cure hemorrhoids

Edited September 30, 2018 by atyclb

[Jim1000]

Wonder if they will want their mini  sub back?

[Bluespunk]

He’s a very lucky boy to get off so lightly. 

[ttrd]

13 hours ago, Samui Bodoh said:

"...I think this is the best possible outcome for everyone involved..."

 

I agree wholeheartedly with the quoted statement above.

 

Musk does seem like a bit of a weirdo (to use the technical term) and perhaps it is a good thing not to have the weirdo responsible for/burdened with the intricate, boring details of a large company's operations.

 

That said, there are few in the our modern times that can claim the title of "Genius", but after PayPal, Tesla and Space X. I think Musk deserves it. Further, add in advances in batteries, the hyperloop, and who knows what else and we have a budding Edison or Tesla in the making.

 

Yes, find some corporate technical weenie to run the operations at Musk's companies, but free Elon up to let his imagination soar; great things have already occurred, and who knows what is on the horizon.

 

Go Elon Go!

 

 

Agree, but the outcome seems to have missed the most important part - a life lasting twitter suspension...

[Basil B]

14 hours ago, rooster59 said:

Tesla and Elon Musk have agreed to pay $20 million each to financial regulators

 

Why should Tesla pay $20m, that cost will be passed on to the share holders many who have already been hurt by Musk's actions, Tesla shareholders should be calling for an EGM to remove him. 

[ttrd]

42 minutes ago, Basil B said:

 

Why should Tesla pay $20m, that cost will be passed on to the share holders many who have already been hurt by Musk's actions, Tesla shareholders should be calling for an EGM to remove him. 

 

Pls not remove him yet - such move may upset Vernon's mother....

Edited September 30, 2018 by ttrd

[nausea]

15 hours ago, Samui Bodoh said:

"...I think this is the best possible outcome for everyone involved..."

Agree totally, he's a vision guy, the sooner they get his hands off the steering wheel the better. He plots the direction, minions make it happen.

[stevemac]

 
Why should Tesla pay $20m, that cost will be passed on to the share holders many who have already been hurt by Musk's actions, Tesla shareholders should be calling for an EGM to remove him. 

Because it as a business issued unregulated information to the markets through their most senior officer (Musk tweets), and as an organisation they are responsible for this. As a shareholder you own part of the company and so pro rata in relation to the shares you own, you are responsible also and part of the penalty is with you as a shareholder. It's one of the risks of being in the stock market.

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[lamyai3]

14 hours ago, atyclb said:

good news this will free time up for him to continue medical research and perfect a capsule to cure hemorrhoids

The mini-sub (known in the lab as Preparation G) was close to being just right, and should be perfected in the next run.

 

[atyclb]

5 hours ago, stevemac said:

10 hours ago, Basil B said:

 
Why should Tesla pay $20m, that cost will be passed on to the share holders many who have already been hurt by Musk's actions, Tesla shareholders should be calling for an EGM to remove him. 

Because it as a business issued unregulated information to the markets through their most senior officer (Musk tweets), and as an organisation they are responsible for this. As a shareholder you own part of the company and so pro rata in relation to the shares you own, you are responsible also and part of the penalty is with you as a shareholder. It's one of the risks of being in the stock market.

 

 

thanks, you saved me from having to type that

[billd766]

19 hours ago, Jim1000 said:

Wonder if they will want their mini  sub back?

 

He could always give it to Vern Unsworth for free.

[SuperTed]

Agree totally, he's a vision guy, the sooner they get his hands off the steering wheel the better. He plots the direction, minions make it happen.

No, Musk is the total visionary - makes the plan and executes it. Tesla would fold without him.

The SEC was overly aggressive. Not the first time it’s happened. But so far away from expected behavior one must question if Trump was taking revenge for Musk and other resigning from his tech and business committees.


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[Jim1000]

Perhaps he could re- train as a pop , sorry rock star and smash  up hotels rooms .

I think he would be good at that . !