Tesla, US SEC Support Approval of Settlement

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By Reuters | Updated: 11 October 2018 16:42 IST
Highlights
  • SEC, Tesla, and Musk submitted joint filing in support of the settlement
  • They said the terms were in the best interest of investors
  • Musk agreed to pay $20 million fine, and step aside as Tesla's chairman

The US Securities and Exchange Commission, Tesla, and Chief Executive Officer Elon Musk submitted a joint filing late on Wednesday in support of a settlement, saying the terms were in the best interest of investors.

"We therefore respectfully submit that the court should accept and enter the proposed consent judgments," they said in a letter filed with the US District Court, Southern District of New York.

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Last week, a federal judge had ordered the SEC and Musk to justify their securities fraud settlement, which let Musk remain CEO, by October 11.

Musk agreed to pay a $20 million (roughly Rs. 150 crores) fine, and step aside as Tesla's chairman for three years, to settle charges that could have forced his exit from Tesla. The company also accepted a $20 million fine, despite not being charged with fraud.

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However, Musk appeared to mock the SEC on Twitter last Thursday, just hours after the court ordered him and the SEC to explain why their settlement was fair and reasonable.

"Just want to [sic] that the Shortseller Enrichment Commission is doing incredible work," Musk, a frequent critic of investors betting against the electric car company, wrote. "And the name change is so on point!"

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Tesla shares were down 1.3 percent at $253.5 in premarket trading.

© Thomson Reuters 2018

 

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Further reading: US, SEC, Tesla, Elon Musk
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