Elon Musk steps down as Tesla Chairman after Controversial Tweet


Still, despite the ever-present controversy and turmoil surrounding Musk and his baby, Tesla still has a ton of believers on social media.

The stock had dropped 14% on Friday after he'd turned down the initial settlement terms. The SEC eventually sued Musk for securities fraud on Thursday.

According to analysts, the settlement is probably the best thing for both the SEC and Musk and Tesla, because the SEC is showing it can act to enforce change in protecting shareholders, while Musk-removed as chairman-will keep its CEO role at Tesla: a role analysts and Tesla believers see as crucial for the company. He said his outlook for shares is now more positive than it was before the downgrade.

"I expect the stock to trade materially higher on this and into the quarter where we can focus on the fundamentals".

Musk's "funding secured" tweets were made on 7 August, and claimed that he was planning to take the company private at a price of $420 per share - a premium of just over 20 per cent of the company's stock price (which has since nose-dived) at the time. Tesla has never reported a net profit and has been burning through cash since it was created in 2003. Besides a new chairperson, Tesla was also ordered to appoint two new, independent members to its board.

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However, the CEO of Tesla, of course, Elon Musk may resume this position within 3 years and managed to remain as the CEO of Tesla.

Two new independent directors will be appointed to the board and a new committee of independent directors will be expected to put in place additional controls and procedures to oversee Musk's communications. 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.

To make matters even more unusual, Elon's "420" number was an inside joke between himself and his girlfriend - Canadian singer Grimes.

Musk has gained legions of fans for his bold approach to business and technology, using his 23 million Twitter followers account to promote Tesla, his rocket company SpaceX, and tunnel venture, the Boring Co.

The settlement doesn't resolve investors' lawsuits, which were significantly strengthened by the SEC's complaint.