In this photo taken September 29, 2017, the billionaire entrepreneur and founder of SpaceX, Elon Musk, speaks at the 68th 2017 International Astronautical Congress in Adelaide.(Photo: AFP / Getty Images)

Now that Tesla's CEO, Elon Musk, has settled the fraud charges stemming from an erroneous tweet, what's next for the billionaire, his electric car company and the many customers and investors who have a financial stake in both?

Musk will remain as CEO, but he must leave his position as Chairman of the Tesla Board of Directors for three years and pay a $ 20 million fine for doing what the Security and Exchange Commission has called " false and misleading "Tesla had sufficient funding to move to the private sector and, under the regulation, will add two new independent directors to the board of the company.

The ramifications of the deal should be broadly positive, which will avoid an investigation that could have gone on indefinitely and undermine the confidence and earnings of the relatively young car buyers.

But it's also a rare loss for Musk, an innovator who has made bold progress in areas ranging from electronic payments to space exploration.

Here is a glimpse of the likely future:

For motorists

Those who have spent tens of thousands of dollars on a Tesla vehicle should breathe a sigh of relief, say some industry watchers.

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"Everyone should be happy that … it's over with," says Rebecca Lindland, an analyst at Kelley Blue Book, who said that a thorough investigation could have pushed the niche company, which has regularly lost money, at financial risk, even bankruptcy.

"It's a company in which people are actively investing, both in the stock market but also in their own garage," Lindland said. "It would have been detrimental to a lot of people if the company went bankrupt or if that (investigation) lasted for years."

For Elon Musk

The charismatic Musk has reached an almost cult audience and has the knack for making headlines, whether he's attending a famous actress or shooting on another nabob. But the tussle with the SEC can lessen some of its celebrity glow.

TO CLOSE

Tesla's CEO tweeted some questionable articles, and one of them sued the Securities and Exchange Commission.
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"I think it's the first crack in the personal image of Elon Musk," says Rob Frankel, a branding expert, who adds that Musk personifies Tesla in the same way that Steve Jobs personified Apple. . "Musk by now is known as much for his erratic behavior in his personal life as for his creative and innovative genius.This is the first formal complaint that resulted, and that could be problematic." ;

But others say that Musk took a break, retaining a leading role and avoiding sanctions that could have been much more severe.

"At least, Musk remains at the helm of the company, and the addition of two board members is a good thing," said Michelle Krebs, an analyst at Autotrader.

And with the SEC's regulation calling for the appointment of an independent president to replace Mr. Musk, he could be released to do what many believe he does best.

"People can replace him as president, but no one can replace his visionary point of view," Lindland said. "We need people like him around the world to push us, challenge the boundaries, question us, we do not need to let him direct the day-to-day operations."

For Tesla

Tesla will need to add the two new independent directors within 90 days. And the agreement with SEC also calls on the company to create a standing committee to oversee executive communications with shareholders, by tweet and by other means.

Such measures could give Tesla much needed stability.

"This will bring independent governance that is lacking in Tesla, which is growing and continuing to grow as a company," Lindland said.

For shareholders

Shareholders will likely be relieved that the shadow of an SEC investigation is no longer hovering over the automaker.

"The settlement means that the stock can form a base and grow from there without fearing a long and discouraging fraud test from the SEC," says Eric Schiffer, CEO of the Patriarchate Organization.

The company's stock had closed Friday at $ 264.77 per share, down 13.9% from its close on Thursday, just before the SEC announced that it had accused Musk of securities fraud.

Investors will likely remain vigilant about how Tesla's new, diversified leadership is leading the business.

"Generally, these highly-managed companies are resisting a few shocks," says Frankel, "but if the situation does not correct, they will fall apart, so I imagine that Tesla's investors would be on yellow alert." & # 39;

For competing manufacturers

For other people wanting to locate in the electric car space, Tesla's faux pas may give an idea of ​​what not to do.

"I've had a lot of startup clients and I can tell you from experience that it's always better to be second or third in the market because you do not have to invest so much in human and financial capital market like the first guy, "says Frankel.

But thanks to the SEC deal, Tesla may have a second wind.

Other "manufacturers may not be directly affected by a new president at Tesla," says Lindland. "It confirms that they will continue to be a formidable rival."

Contribution: Nathan Bomey

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