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Elon Musk Can Stay Tesla CEO, But Not Chairman, Under SEC Settlement

  • Billionaire and carmaker to split paying $40 million penalty
  • Tesla is required to add two independent directors to board
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The SEC Forces To Dampen Musk's Dominance
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Elon Musk will give up the role of Tesla Inc. chairman and pay a $20 million penalty to settle fraud charges brought by the U.S. over his claims about taking the company private.

Musk will get to keep his job as chief executive officer and remain on the company’s board, but must resign as chairman within 45 days and can’t be re-elected to the role for three years as part of the accord reached Saturday with the Securities and Exchange Commission. Tesla will also pay a $20 million fine.