Elon Musk resigns as Tesla Chairman for three Years. This happens after he reveals certain confidential data of the company via a tweet. SEC consider this revelation as a securities fraud. According to Security Exchange Commission Elon must not share Tesla Private Data over a social media. This violates the rights reserved for this company. Remaining only 45 days after which he resigns as the company chairman for three years. However, he still holds the key of Tesla because he is not resigning as the Company CEO.
For the settlement of this faulty mistake, SEC penalizes Tesla as well as Elon. With a total of 20 million dollar penalty, Elon and Tesla together have to pay this amount. SEC points a Fraud charge on the Company CEO. According to Times News SEC gives Musk an option to submit fine of 10 million dollars and resigns as the chairman of the company. However he denies this less restrictive option, reasons are not known yet.
Talking about this chairman post of the company, officials appoint two independent directors or you can say Chairman for Tesla. Moreover, after this drastic scenario, Tesla stock rate degrades on the ticker. This will also affect all the investors as well as the health of the company.
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