The settlement with the Securities and Exchange Commission (SEC) allows Mr. Musk to remain CEO of the electric vehicle company but requires him to relinquish his role as chairman for at least three years. In an internal email obtained by Bloomberg, company chief Elon Musk is asking around 100 to 200 employees thinking of buying a Tesla to join an internal testing program for the automaker's full-fledged autonomous system.
Musk and Tesla were also fined $20million each.
Tesla has been hustling to deliver Model 3 cars at the end of its financial third quarter.
Tesla shares took a steep dive last Friday, plunging 13.90% amidst news of the SEC's lawsuit against the outspoken CEO. Andrew Doane, who has a Model S sedan, Model X crossover and Model 3 vehicle and is president of the Tesla Owners Club of the Mid-Atlantic region, mustered club members to pull shifts at delivery hubs in Virginia and Maryland, and worked one himself. Likewise, Tesla will pay another $20 million due to its failure to check whether Musk's announcements complied with the law.
Sen. Bob Corker to Vote 'Yes' on Kavanaugh: 'Nothing Corroborates the Allegation'
Dr Ford was lauded for her testimony and her bravery by various Democrats and by a large number of supporters around the world. He evaded questions about calling for an FBI investigation and proclaimed that " you'll never get me to quit ".
Tesla stock (NASDAQ:TSLA) is exhibiting a strong recovery on Monday, trading up 15.40% at $305.54 per share during the opening bell.
The company has recently been struggling to meet audacious production goals for its Model 3 sedan. Tesla was hit with a $20 million fine of their own. It was one of Elon's first tweets since settling with the regulatory agency.
Two new independent directors will be appointed to the board and a new committee of independent directors will be expected to put in place additional controls and procedures to oversee Musk's communications. The SEC also filed papers that charged Tesla with failing to exercise proper oversight over Musk's actions and laid out a separate settlement of those charges.
FBN's Charlie Gasparino on Tesla CEO Elon Musk's SEC settlement.