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Elon Musk Steps Down As Chairman Of Tesla

Musk has courted several controversies in recent times by making a series of unusual public comments or appearances.

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Tesla CEO Elon musk
Musk hints at Boring Company's first tunnel launch in US. (VOA)
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Coming under pressure from his lawyers and investors of Tesla, tech billionaire Elon Musk has agreed to step down as chairman of the company for three years and pay a $20 million fine in a deal with the US stock market regulatory authority, Securities and Exchange Commission (SEC), to resolve securities fraud charges.

The SEC announced the deal on Saturday — two days after it sued Musk in federal court for misleading investors over his post on Twitter last month that he was considering taking Tesla into private ownership.

Musk said that he had “funding secured” for a buyout of the electric-car company at $420 a share, reports The New York Times.

Under the settlement, which requires court approval, Musk will be allowed to stay as CEO but must leave his role as chairman of the board within 45 days. He cannot seek re-election for three years, according to court filings.

Elon Musk, tesla
Musk faces lawsuits for ‘paedo’ remark, Tesla tweet. (Wikimedia Commons)

He accepted the deal with the SEC “without admitting or denying the allegations of the complaint”, according to a court document.

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms — including an obligation to oversee Musk’s communications with investors — and both will pay financial penalties,” Steven Peikin, Co-Director of the SEC’s Enforcement Division, said in a statement.

“The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders,” Peikin added.

Musk’s tweet about taking his company private, along with attacks on critics on social media, raised concerns with investors about whether Musk has become too focused on criticism from so-called short-sellers who had been making bets against him and Tesla.

According to the SEC’s complaint, Musk’s misleading tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to significant market disruption.

tesla
Tesla has become the most valuable American carmaker, with its stock worth more than $50 billion. Pixabay

Tesla in recent years has become one of the most valuable American car maker, with its stock worth more than $50 billion.

But its shares have been hit hard since the SEC filed the lawsuit. On Friday, its stock dropped almost 14 per cent.

Musk, a co-founder of Tesla, is the company’s largest stockholder, owning approximately 22 per cent of its outstanding shares.

Also Read: Elon Musk Apologises To UK Driver For Calling Him a ‘Pedo’

The company has recently been struggling to meet audacious production goals for its Model 3 sedan.

Musk has courted several controversies in recent times by making a series of unusual public comments or appearances, including an Internet interview in which he appeared to smoke marijuana. (IANS)

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Elon Musk Hints at Boring Company’s First Tunnel launch

"Electric skates will carry between 8 and 16 passengers, or a single passenger vehicle," according to the Electrek

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Tesla CEO Elon musk
Musk hints at Boring Company's first tunnel launch in US. (VOA)

Billionaire Elon Musk on Saturday tweeted a photograph with “The Boring Company” and “December 18” on it, indicating that his infrastructure and tunnel construction firm is set to launch its first tunnel under Los Angeles in the US.

Boring Company was earlier slated to launch the tunnel on December 10 and postponed it.

The company reportedly said they would offer the first public test ride with the electric transport system inside the tunnel.

Earlier in October, Musk had announced that the Boring Company was “almost done” with its maiden test tunnel and they would open the project to the public around December 10.

Elon Musk, tesla
Tesla CEO, Elon Musk. (Wikimedia Commons)

According to Elon Musk, the company is building a watchtower at the exit of the tunnel with bricks made from dirt dug out of the tunnel.

In Chicago, the company will reportedly build a “Loop” which they described on their website as: “Loop is a high-speed underground public transportation system in which passengers are transported on autonomous electric skates travelling at 125-150 miles per hour.”

Also Read- Rocket Lab is Set To Launch 10 NASA CubeSats

“Electric skates will carry between 8 and 16 passengers, or a single passenger vehicle,” according to the Electrek.

In order to implement this system, the company will have to dig the tunnels and deploy the infrastructure to move those “autonomous electric skates” inside the tunnels. (IANS)