Elon Musk says Fight against S.E.C or Quit
Elon Musk | Image source: NYTimes

After the SEC charged Elon Musk for securities fraud, Tesla's Board condemned the regulators, saying that it was "Elon, his honesty and confidence in the leadership of the company Tesla".

๐Ÿ•ดOfficers of the Securities and Exchange Commission (SEC) were taken into consideration on Thursday morning when Tesla's board and its chairman Elon Musk suddenly pulled out of a precisely crafted agreement.

After the SEC, Elon Musk responded by accusing him, but not the company who co-founded, along with securities fraud, the board further stimulated the regulators and said that the board of directors were fully confident in Elon, his honesty and his leadership of Tesla.

It was astonishing reversal: the Board had dismissed the extraordinary handling of liberality: this would allow Elon Musk to remain as the Chief Executive Officer, and he would need to leave the post of chairman for only three years. 

Now, when the regulator prevailed in the court, the company was at risk of losing Elon Musk as chairman and chief executive officer.

Jeffrey Sonnenfeld, Professor at Yale School of Management, told CNBC on Friday, that "the board is using the Jim Jones-Jonestown Suicide Treaty as a strategic plan. They are drinking the founder's total-aid and Elon Musk is the worst enemy of himself."

Before returning to the Federal Regulators with a final decision in a phone call with the director, Elon Musk had scared to resign the post on the spot if the board demands forcefully that he and the company will enter into the agreement. Not only this, he demanded the board to increase its honesty publicly.

According to the three people familiar with the board's decision, one of Tesla's most important assets, which was scared with the departure of that man, the board completed its demands.

The next day, Tesla's lawyers had returned to the Security and Exchange Commission, they were looking for a second chance - this time with the approval of Elon Musk's disorder.

One factor that changes Elon Musk's heart i.e. Tesla's shares falls down on Friday morning because investors absorbed the news of the dismissed agreement and it is likely that the SEC would force Elon Musk to take action. On Friday it will close about 14 percent, which means 7% of all shareholders properties.

After a lot of decisions, on Saturday, Elon Musk finally decided to resolve the matter, that began with the now-infamous Twitter post saying that he had "enough money" for a purchase at $420 per share.

Elon Musk's 48-hour hurdle came at an important price for him and the company. On Thursday, they had passed liberal agreement and the SEC. Tesla will also pay $20 million fine, and Mr. Musk personally decided to buy the same amount in Tesla shares.

The SEC also said that the company also needs to add two new directors and choose an independent director in the form of chairman.

John C Coffee Jr, Professor at Columbia Law School, said, "It is evidence to reject such a favorable settlement that he needs to be monitored." "he had no legal foot to stand by, and I am sure his lawyer told him, but he became very tangled about not being able to declare his innocence."

Tesla's share has returned in this week, indicating the relief of investors that Elon Musk will remain as the Chief Executive Officer while the company will establish a mechanism to check its rapidly impulsive behavior.

The board will closely monitor Elon Musk's communication with investors, and other things, by establish a permanent committee responsible for looking the agreements, reports and more.

Still, one important thing is remaining to see i.e. how the board will be against the irregular nature of Elon Musk and his dominant role in the company. For more updates on Tesla, Stay Tuned with us.

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