Things you do for your company! Tesla’s chairman Elon Musk might not have thought about this in his wildest dream that a single tweet can cost him his position. According to the latest reports, after a lawsuit filed against him for misleading investors over funding, Elon Musk has agreed to step down from his position of a chairman at Tesla and will pay $20 million to settle claims. This settlement still requires approval from the court though.
On August 7, Elon has tweeted about the secured funding he received to take Tesla private at $420 a share. Soon the stock of company sore for a limited period of time. But later an agency filed a lawsuit against him for misleading investors as they realized that Musk had not secured any funding, as stated by SEC.
Musk now will have to step down from his position and he will not be eligible for reelection for the next three years. However, he can enjoy his position of a CEO at Tesla and will be permitted to remain a member of the board.It now remains to see whether the Department of Justice will file criminal charges against Musk or not.