BREAKING! Tesla's CEO, Elon Musk Is OUT...Kinda...

BREAKING! Tesla's CEO, Elon Musk Is OUT...Kinda...
Well, that was fast.

Late this week the Securities and Exchange Commission announced civil charges against Tesla CEO and Chairman, Elon Musk. Turns out as of today the civil matters have been settled. According to reports, this still will require court approval.

Elon Musk will have to pay $20 million in fines as will Tesla. In addition, Musk will have to forfeit his position as chairman of Tesla for at least three years. He can still remain the company's CEO, however.

Keep in mind, there is still a criminal investigation ongoing related to his activity on Twitter.

As Tesla is being held responsible for not better managing Musk's tweeting activity, it will have to undergo what's being called "comprehensive corporate governance and other reforms."

Stay tuned for more breaking news.


The Securities and Exchange Commission settled charges with Tesla CEO Elon Musk over his aborted bid to take the company private, with the billionaire remaining as the helm of the company, but relinquishing his chairman title and getting slapped with a hefty fine...

...As part of the settlement, which is still subject to court approval, Musk will also pay a civil penalty of $20 million and give up his role as chairman of the board for at least three years. Additionally, the SEC imposed a $20 million fine on Tesla, which will also be expected to appoint two new independent directors to the board...


Read Article

SanJoseDriverSanJoseDriver - 9/29/2018 7:47:48 PM
-4 Boost
That was one expensive tweet :/


FoncoolFoncool - 9/29/2018 7:57:46 PM
+8 Boost
The beginning of the end.



SanJoseDriverSanJoseDriver - 9/29/2018 9:36:07 PM
-4 Boost
Unlikely, especially after this quarter's delivery numbers are officially announced.


FoncoolFoncool - 9/29/2018 10:48:16 PM
+7 Boost
They are still at an unsubstantiated cash burn rate. The customer subsidies are ending and there isn’t a climate change true believer in the White House to save them.


dumpstydumpsty - 9/29/2018 11:30:33 PM
+2 Boost
This probably what GM, Toyota, VW, or Daimler-Benz needed to start developing some purchase/partnership packages.


SanJoseDriverSanJoseDriver - 9/30/2018 3:21:56 AM
-7 Boost
Re: the cash burn, it may be nonexistant this quarter... we'll find out soon. If they delivered more than 75,000 cars there is a good chance they have a net profit.


Vette71Vette71 - 9/30/2018 9:59:11 AM
+2 Boost
They apparently built around 51000 model 3s. About 80% of the goal of the 5000/wk. So that's the run rate. Add in 10,000 model S/X cars. 61000 vehicles. Yes a lot of June's production wasn't sold in the second quarter so there was inventory to ship out of, but September's production also didn't all ship in the quarter. 75000 is a stretch.


SanJoseDriverSanJoseDriver - 10/2/2018 10:45:12 AM
-3 Boost
Hot off the press, Q3 production confirmed...

80,000 vehicles (!)
83,500 deliveries (!!)

53,239 Model 3s produced
26,903 Model S/X produced
50% increase over Q2'18


SanJoseDriverSanJoseDriver - 10/2/2018 10:49:45 AM
-3 Boost
Also, more AWD cars were produced in Q3 than RWD, which means much higher margins. The AWD version starts at $55k can has extra options bringing the ASP even higher.


GermanNutGermanNut - 9/29/2018 8:31:23 PM
+6 Boost
So Musk stays on as CEO but there will be a new chairman. That will potentially restrict his ability to do all that he wants. Also, the criminal investigation is still ongoing.


SanJoseDriverSanJoseDriver - 9/30/2018 3:20:53 AM
-6 Boost
He owns a lot of shares, combined with other long-time shareholders he'll still have the most sway with votes. Probably a good time for him to take a step back and work less anyway.


dumpstydumpsty - 9/29/2018 11:16:43 PM
+4 Boost
So he can't chair the board of directors but he can still be ceo or president?


TomMTomM - 9/30/2018 12:52:13 AM
+13 Boost
It is still the civil lawsuits from individual investors that will cost the most. ANd remember - this "settlement" is an admission of guilt.


MDarringerMDarringer - 9/30/2018 10:56:38 AM
0 Boost
LOL at ex-sponge....what an unfortunate image


PUGPROUDPUGPROUD - 9/30/2018 6:22:23 AM
+11 Boost
The new chairman has fiduciary responsibility to the shareholders to keep Musk in line and a tiger by the tail in trying to do so. This soap opera is far from over. $20 million to split between shareholders harmed by his actions seems like peanuts though Musk took the biggest hit personally. While the settlement is technically and legally "not an admission of guilt" the wounded parties certainly have strong legal rights to try to extract more cash from Tesla.


Vette71Vette71 - 9/30/2018 9:47:11 AM
+6 Boost
The settlement requires two new outside independent Board members and a Board Committee made up of independent Board members. The problem is that the current Board members are too close to him and ergo not independent. The Chairperson needs to be independent for good governance, but finding an strong outsider to take that role is going to be difficult. Its like a suicide mission!


MDarringerMDarringer - 9/30/2018 10:04:10 AM
+1 Boost
Johan DeNysschen to the rescue!


Vette71Vette71 - 9/30/2018 2:22:32 PM
+1 Boost
MD Yikes!! Even Johan wouldn't/shouldn't take that job. Musk will maneuver to get someone he can control when at this stage of the company the Chairperson (Its California so they have to have a woman... by law) should control Musk. The large investors concerned about their holdings ought to want someone tough.


MDarringerMDarringer - 9/30/2018 4:08:05 PM
+1 Boost
@Vette71 You're wrong.

Model S becomes the TS7
Model 3 becomes the 3S5
Model X becomes the X7X

See...the skid mark that is Musk is gone.


MDarringerMDarringer - 9/30/2018 9:22:39 AM
+3 Boost
They really should have made him leave the company. Musk is in the way of Tesla actually succeeding.


mre30mre30 - 10/1/2018 6:20:55 AM
+3 Boost
#Enron2.0


dumpstydumpsty - 9/30/2018 12:27:14 PM
+11 Boost
Become increasingly wreary of all the speculative financial health for Tesla. Is this a highly organized ponzei or can this automaker business be sustainable as a separate internally funded entity?

Right now, the perception is that Tesla is a boutique brand with a 10-15 year shelf life. It will either needs to grow by acquiring an existing automaker to utilize their dealer/manufacturing/repair/sales network or Tesla needs to be acquired by an existing automaker that knows what they're doing.

Tesla is losing money when it doesn't need to. Egos should cast aside to make the business viable for the long term & to better position production/delivery/sales to earn the profits it should be getting today.


MDarringerMDarringer - 9/30/2018 5:57:24 PM
-7 Boost
Ford or GM should buy Tesla for obvious reasons.


TruthyTruthy - 9/30/2018 10:26:08 PM
+13 Boost
They will not be bought by anybody until the share price collapses. The current valuation is the result of irrational exuberance.


TheSteveTheSteve - 10/1/2018 1:49:51 PM
+2 Boost
It's "business as usual" for Tesla Motors, and the Tesla faithful, who continue to scoop up shares at ridiculously high prices.

+1 for Truthy's comment, above.


zliveszlives - 10/1/2018 5:18:34 PM
0 Boost
where there is a demand!!!
i guess that is free market after all.


HauergHauerg - 10/2/2018 3:50:49 PM
-3 Boost
The headline has the quality of a tweet by the orange one.

Using CEO and out in one sentence is just BS.
Copyright 2026 AutoSpies.com, LLC