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Elon Musk will step down as president of Tesla to settle charges of fraud brought by the United States over allegations that he has deprived his company of confidentiality. Under the Musk settlement, Tesla and Musk will each be fined $ 20 million – and Musk can remain as CEO, the Security and Exchange Commission (SEC) said on Saturday.
Musk's tweet that his company would be private would be misleading, the SEC said, and resulted in "a significant disruption of the market." In a statement, Steven Peikin, co-director of the SEC's Enforcement division, explained: "The resolution aims to avoid any disruption of the market and harm Tesla shareholders."
Neither Musk nor Tesla admitted that wrongdoing had been committed under the settlement and Musk could be re-elected president after three years, the SEC said. Nevertheless, his responsibilities will change. The SEC has called for some board reforms, including requiring it to oversee Musk's communications with investors.
To understand how Musk will be affected by the government's decision, here's what sets the roles of CEO and Chairman of the Board apart and how Musk's tasks might change from that moment on.
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