Published: Sun, October 07, 2018
Finance | By Cynthia Curry

Tesla Directors Proposed James Murdoch as Chairman

Tesla Directors Proposed James Murdoch as Chairman

Greenlight's letter came one day after Musk, a longtime critic of short-sellers, appeared to taunt the U.S. Securities and Exchange Commission by calling it the "Shortseller Enrichment Commission" on Twitter.

The settlement provided for appointment of a new chairman and directors, as well as moves to oversee Musk's output on social media.

Musk has often previously vilified short sellers, who bet that the price of a stock will go down, blaming them for spreading bad press and negative analysis on Tesla's prospects.

Shares in Tesla closed down 4.4%, and fell further in after hours trading following Mr Musk's tweet.

We all know the story by now: Musk suggested on Twitter that Saudi Arabia would be taking Tesla private, sending shares soaring, but changed his mind shortly after, resulting in the SEC filing a lawsuit against Musk saying that he had been manipulating shares.

Sources with knowledge of the matter tell FOX Business SEC regulators are in a bind - they don't want to punish shareholders of Tesla by coming down on the publicly traded company too hard - but it's painful to countenance Musk's blatant flouting of the rules.

The commission is asking the court for an order stopping him from making false and misleading statements along with repayment of any gains as well as civil penalties.

Russian Federation and India have to ride out some choppy waters
Top of the agenda at Hyderabad House on Friday morning could be the $5-billion deal for the advanced S-400 air defence system. He will also interact with a group of talented children and address an India-Russia business meet.

But Musk had not secured the funding, the SEC said.

The SEC settlement still needs court approval.

It's thought that both sides will argue that removing Musk will damage the company's stock, which already dropped 2 per cent after the Tweet.

The SEC declined to comment about the latest tweet, and a spokesperson for Tesla was not immediately available for comment.

Musk's tweet came the same day that Judge Alison Nathan, a US District Court judge in NY, requested a joint letter explaining why she should approve the tentative settlement deal between Musk and the Securities and Exchange Commission.

However, Musk and the SEC settled the charges over the weekend, with Musk and Tesla agreeing to pay $20 million in fines each and Musk stepping down as Tesla's chairman for at least three years. The settlement was announced on September 29, two days after Musk was charged. The SEC also hit the billionaire and Tesla each with $20 million fines and is requiring that the board add two new members.

After Musk initially rejected a settlement offer from the agency, which the SEC responded to by suing him, Tesla and its CEO accepted revised settlement agreements that are somewhat harsher.

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