Tags: sec | tesla | elon musk | settlement

SEC, Tesla Support Approval of Elon Musk Settlement

Superchargers at Tesla Motors factory in parking lot with tesla gray car in back
(Winnietam/Dreamstime)

Thursday, 11 October 2018 07:41 AM

The U.S. Securities and Exchange Commission, Tesla Inc 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 U.S. District Court, Southern District of New York.

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

Musk agreed to pay a $20 million 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.

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 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!"

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

© 2018 Thomson/Reuters. All rights reserved.

   
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The U.S. Securities and Exchange Commission, Tesla Inc 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.
sec, tesla, elon musk, settlement
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2018-41-11
Thursday, 11 October 2018 07:41 AM
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