logo-loader

Elon Musk and Tesla settle fraud charges with SEC, to pay $40M fine

Last updated: 13:35 01 Oct 2018 BST, First published: 23:01 29 Sep 2018 BST

Elon Musk Twitter profile
The mercurial CEO has been under pressure after a series of controversial tweets

Embattled Tesla Inc (NASDAQ:TSLA) CEO Elon Musk has settled charges brought by the Securities and Exchange Commission stemming from a tweet last month claiming to have the funding to take the electric-car maker private.

According to the SEC, Musk has agreed to step down as chairman and pay a $20 million fine. The company will also pay $20 million.

Among the conditions of the settlement, the company must put controls in place to oversee all of Musk's communications with investors.

READ: Tesla faces criminal probe by US over Elon Musk's statements on aborted go-private plan

Musk will remain in his role as CEO. He neither admits nor denies the allegations as part of the settlement. He will be ineligible for re-election as board chairman for three years.

The deal is subject to court approval, the SEC said.

Tesla shares jumped 16% to $307 in premarket trading.

READ: SEC Settlement

In August, Musk tweeted that he was considering taking the company private at $420 per share and that he had "funding secured." The tweet sent Tesla shares on a wild ride.

Musk still faces a probe by federal prosecutors over the tweet.

Tela shares closed 13.9% lower to $264.77 Friday.

--Updates share price, adds Twitter oversight--

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

1 hour, 38 minutes ago