Elon Musk forced to resign as Tesla chairman, must pay $20 million fine in SEC settlement over catastrophic '420' tweet

SEC says that Musk chose the $420 price to impress his girlfriend, Montreal musician Grimes. The term '420' is commonly used to refer to marijuana
PUBLISHED SEP 29, 2018

Elon Musk has reached a deal over fraud charges that will see him step down as electric automaker Tesla's chairman of the board and pay a $20 million fine but stay on as CEO, US securities regulators said Saturday.

The agreement eases pressure on Tesla's embattled CEO, who faced potentially being barred from serving as an officer or board member of a publicly traded company as a result of the charges, which stemmed from a tweet by Musk about taking the company private.

The SEC said Musk's statements on Twitter were "false and misleading" and that he had never discussed the plans with company officials or potential funders (Getty Images)
The SEC said Musk's statements on Twitter were "false and misleading" and that he had never discussed the plans with company officials or potential funders (Getty Images)
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