Elon Musk Pulled Out of Settlement With SEC At Last Minute (cnbc.com)

Sources have shared some new details with CNBC relating to the recent SEC charges against Tesla CEO Elon Musk. Yesterday, U.S. securities regulators sued Musk for allegedly making false statements related to his abandoned efforts to take Tesla Motors private. Now, according to CNBC, Tesla and the SEC were close to a no-guilt settlement but Elon Musk pulled out at the last minute. From the report: Under the deal, Musk and Tesla would have had to pay a nominal fine, and the CEO would not have had to admit any guilt, the sources said. However, the settlement would have barred Musk as chairman for two years and would require Tesla to appoint two new independent directors, CNBC's David Faber, citing sources. Musk refused to sign the deal because he felt that by settling he would not be truthful to himself, and he wouldn't have been able to live with the idea that he agreed to accept a settlement and any blemish associated with that, the sources said. Musk called the SEC's allegations "unjustified" and that he acted in the best interests of investors. "Tesla and the board of directors are fully confident in Elon, his integrity, and his leadership of the company, which has resulted in the most successful U.S. auto company in over a century. Our focus remains on the continued ramp of Model 3 production and delivering for our customers, shareholders and employees," said Tesla's board of directors in a statement.

Comments

Gutsy move

[Anonymous Coward]

Rockets.
Slick Cars. (in space)
Big Drills.
Flamethrowers.
Playing Chicken with the SEC.

Do I see a thrill junkie?

Re:Should have taken the deal...

[Anonymous Coward]

electric vehicle. It had great potential

You're saying they resisted implementing some good ideas? Maybe they weren't amped up enough for success. They are no longer part of current events though, so it hardly matters.

just going around in circles

[mschaffer]

If Elon had actually secured the funding, he could make Tesla a private company.
If Elon had actually secured the funding, he wouldn't be in trouble with the SEC.
If Elon wasn't in trouble with the SEC, he wouldn't need to make Tesla a private company.

What happens if...

[DanDD]

What happens if this SEC civil lawsuit brings down the Tesla stock price to the point where Musk and others are able to more easily take the company private? Will the SEC investigate itself for stock manipulation? A truly entertaining possibility.