Elon Musk to pay $ 20 Million fine, also resign as Tesla chairman
Image source:woht
The agreement allows Musk to remain the CEO of the electric car company but needs to quit his role as chairman for at least three years.

Tesla chairman and CEO Elon Musk agreed to pay a total of $ 20 million. This will be very bad news for Tesla.

The agreement which was done between Elon Musk, the board of directors and SEC allows Musk to remain the CEO of the electric car company but he needs to quit his role as chairman for at least three years. Tesla will have to appoint a new president to monitor the company.

The Securities and Exchange Commission has announced the agreement news on Saturday, just two days after SEC filed a case on Elon Musk for the removal as CEO from Tesla.

Elon Musk, a billionaire, and Tesla, the company whose last month income in cash was $ 2.2 billion, will pay $ 20 million to solve every issue.
Agreement signed between Elon Musk and Security and Exchange Commission
Agreement signed between SEC & Elon Musk | Image source: Techcrunch
After the SEC filed its lawsuit, on Friday, Tesla's share has been decreased by 14 percent, that means removing $ 7 billion shareholder property. This much loss because of one bad decision. 

Many analysts had predicted that if the Musk was forced to take action then the shares were further deteriorated.

Prior to the SEC's trial on Thursday, Musk had rejected the offer of a similar agreement. It will very profitable for Tesla that Elon Musk agrees with SEC, if he has taken some another step then Tesla shares will be more affected.

The massive downturn in Tesla's market value may have influenced Musk to make a clear change of heart and negotiate on the settlement.

Musk and Tesla reached their agreement without accepting or denying the SEC's allegations. For more updates on Tesla, Stay Tuned with us.

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