Elon Musk Steps Down From Tesla’s Chairman

-On June 28, 1971, Elon Musk was born. He is a South African-born American entrepreneur and businessman.

-He founded PayPal in 1999, SpaceX in 2002 and Tesla Motors in 2003. Musk became a multi-millionaire in his twenties when he sold his company, Zip2, to a Compaq Computer.

-Musk became the center of attention in May of 2012. His company SpaceX launched a rocket that would carry a vehicle to the ISS. He increased his portfolio with the purchase of SolarCity in 2016.

-Now Elon Musk, 47, is a successful investor and business magnate with a net worth of over $20 billion.

-But, one tweet took a huge impact on his career in his most successful company, Tesla. Because of this incident, Elon Musk, the billionaire entrepreneur, will step down as chairman of the electric car company Tesla, and pay a $20 million fine to settle fraud charges.

-Tesla CEO, Elon Musk, has agreed to step down as chairman of Tesla’s board for three y

ears. This was part of an agreement with the SEC (U.S. Securities and Exchange Commission) to resolve a fraud case.

-In August, Musk falsely claimed on Twitter that he had secured funds for a multi-billion dollar buyout of Tesla, leading its share price to skyrocket.

-“I am considering taking Tesla private at $420 [per share]. Funding secured,” Musk tweeted, after a meeting with Saudi Arabian investors who had expressed an interest in the company.

-Tesla and Musk are subjects of an SEC lawsuit for fraud and misleading investors as a result of Musk’s Aug. 7 tweet stating that he had “funding secured” for a buyout of the company at $420 per share.

-After the terms of the agreement, Musk will remain CEO. Tesla will appoint two directors and take steps to control Musk’s communications with investors, as well as creating a committee of independent directors to monitor disclosures.

-Tesla’s shares dropped 13% after the lawsuit was made public on Friday. The stocks dropped from $350 to a record-low $243. This had a huge impact on CEO Elon Musk, due to the fact that he gets one-fourth of his income cut because he is not Chairman of the Board anymore.

-Elon Musk claims that he is to buy $20 million of Tesla shares within the next 4 months. This shall boost his income, enough to stay at around the same salary.

-Although Musk lost the opportunity to be chairman of Tesla, he will still serve as CEO and will continue to expand his portfolio for the years to come.