James Murdoch to succeed Musk as Tesla chairman?


James Murdoch to succeed Musk as Tesla chairman?

U.S. District Judge Alison Nathan, who must approve the settlement, has given the SEC, Musk and Tesla until October 11 to explain why the terms are fair and reasonable.

The settlement mandated that the company must implement "mandatory procedures and controls to oversee all of Elon Musk's communications regarding the Company made in any format".

The SEC has responded by denying any plans for a name change, but won't be drawn on the content of the Tweet.

Venting out on Twitter is nothing new for Musk.

The SEC declined to comment.

Shares of Tesla Inc. fell 7 percent on Friday after David Einhorn's hedge fund Greenlight Capital slammed the electric carmaker, adding to losses sparked by CEO Elon Musk mocking the U.S. Securities and Exchange Commission on Twitter.

Though Musk and Tesla settled the suit with the SEC, some investors might worry Musk's actions on Thursday could still threaten the settlement.

"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 USA auto company in over a century", the board said. Musk and Tesla also are required to pay $20 million in penalties each.

The settlement, which still must be approved by a federal judge, includes a provision meant to rein in the Tesla chief's much-criticized use of Twitter.

As part of the settlement, Musk will also step down as the company's chairman but remain chief executive.

Barclays analyst Brian Johnson argued in a recent note that Tesla's stock has a $130 "Musk premium", which could disappear if he is forced to leave the company.

Yet on Friday, Musk fired off another damn-the-consequences tweet, calling the SEC the "shortseller enrichment committee".

The SEC's deal with Musk is sensible and correct, said Matt Levine at Bloomberg.

Tesla said in its 3Q vehicle safety report that "we've registered one accident or crash-like event for every 3.34 million miles driven in which drivers had Autopilot engaged".

Tesla shares plunged last week after the SEC accused Musk, 47, of fraud over "false and misleading" tweets on August 7 that promised to take Tesla private and said funding had been secured.

The SEC declined to comment on Mr Musk's latest tweet.

"I don't think the SEC would look at this as a denial of the facts alleged", said Peter Henning, a law professor at Wayne State University in Detroit.

However, Musk had been acting erratically for months even before the take-private tweet and the subsequent interviews with the Times and Rogan.



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