ELON MUSK FORCED TO LEAVE THE PRESIDENCY OF TESLA

He was back to the wall. The iconic Tesla founder, Elon Musk, has reached an amicable agreement with the US Stock Exchange (SEC) gendarme, which accuses him of fraud.

According to the terms of the agreement made public Saturday, the billionaire abandons the chairmanship of the board of directors (and cannot represent it for three years) but remains managing director. In this position, he will continue to be responsible for the operations of the automaker, which is going through a delicate phase as it tries to deliver a mid-range electric car model and mass-produce it.

Tesla will also have to appoint two independent directors to the board of directors, one of whom will take the chair. A way for the Stock Market Constable to make sure that the fantastic boss of Tesla is better supervised by his board, just like his communication. In addition, Elon Musk and Tesla must also pay a $ 20 million fine each, according to the terms of the agreement.

AN EARTHQUAKE IN A TWEET

On Thursday, the SEC had officially accused Elon Musk of misleading investors by mentioning in a tweet a withdrawal from the stock market. The stock had immediately collapsed, dropping some 14% at the trading session the next day.

The billionaire had indeed created the stupor by saying in a tweet, during the meeting on August 7, he wanted to withdraw his group from the stock market when the action would reach 420 dollars and he had to do so already secured the necessary funding. It was not so, accused the SEC. Also, in a complaint filed Thursday night, she accused the car group boss of fraud and asked that he can no longer run a company listed on the stock market.

Elon Musk forced to let Tesla's presidency

As a result of his controversial tweets, the flamboyant boss and founder of Tesla, Elon Musk, will have to leave the presidency of the electric car manufacturer ... but he will nevertheless continue to run the company. This is the result of the amicable agreement reached with Tesla following the very serious complaint lodged Friday against Elon Musk by the Securities and Exchange Commission ( SEC ), the supervisor of the US financial markets.

In fact, Elon Musk will no longer sit on the board for at least three years. And in order to better control its untimely statements, the SEC will assign two independent directors to the Board, one of whom will serve as Chair. Initially, the US Financial Markets Constable demanded that the 47-year-old businessman never again be able to run a publicly traded group. Not only has the deal finally been less severe, but Elon Musk can continue to manage the company's day-to-day operations as a director.

Fines of US $ 40 million

On the other hand, the agreement includes the payment by Elon Musk and Tesla of a fine of US $ 20 million each - the equivalent of the average acquisition price of a thousand Tesla Model 3. According to SEC Chairman Walter Joseph Clayton, this amicable agreement "is in the best interests of our markets and investors, including Tesla shareholders." The SEC on Friday accused the billionaire of misleading Tesla investors by announcing, in early August, its intention to withdraw the company from the stock market when the stock's value reached $ 420 and arguing that the $ 51 billion needed for this privatization was already "secure".

The group is currently benefiting greatly from the enthusiasm of many investors for the personality of Elon Musk, many seeing him as a bubbly visionary. Tesla is worth more than Wall Street's second-largest automaker, Ford, even though the company has only made money in two quarters in 15 years.

A bumpy evolution for the Californian manufacturer

The Californian manufacturer Tesla, of which Elon Musk still holds a 22% share, has generated an extraordinary enthusiasm in the world of automobiles in recent years, due to the innovations offered by its luxurious and sporty electric cars. After experiencing serious production delays, the company would produce some 5,000 cars a week since the beginning of the summer. But, the perverse effect of this popularity, she would experience serious delays in delivery.

Since being listed on the stock market, that is for eight years, Tesla has never declared a profit, even if its market value approaches those of the big manufacturers like Ford and GM. In this context, it is understandable that the current setbacks of Tesla senior management may cause concern. Not only among investors, but also for Tesla buyers who have to book their expensive cars well in advance, pay a substantial deposit ... and wait for a delivery that is constantly postponed.