Elon Musk Reportedly Threatened To Resign If Tesla’s Board Pushed Settlement With SEC

New details are emerging about Elon Musk’s showdown with the Securities and Exchange Commission (SEC) as a bombshell report from The New York Times claims the executive threatened to quit if Tesla’s board pushed him to accept a settlement.

As you may recall, Musk and the SEC were prepared to settle their dispute over his “funding secured” tweet. However, at the last minute, Musk’s lawyer reportedly called the SEC and told them that his client was no longer interested in settling.

This pushed the SEC to sue Musk for securities fraud as the agency alleged “Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source.” The SEC’s lawsuit also said Musk made a “series of additional materially false and misleading statements” about taking Tesla private and his actions “caused significant confusion and disruption in the market.”

Getting back to today’s story, The New York Times says Musk demand that Tesla fight the SEC complaint and company’s board “publicly extol his integrity.” This likely explains why Tesla’s board of directors released a statement saying they’re “fully confident in Elon, his integrity, and his leadership of the company.”

While Musk wanted to fight the SEC, he reportedly had a change of heart when Tesla’s stock plummeted nearly 14 percent after the lawsuit was announced. However, the government was annoyed with Musk’s decision to bail on the original agreement so they doubled down on the conditions for the new settlement.

As a result, the SEC reportedly increased Musk’s fine from $10 (£7.7 / €8.7) million to $20 (£15.4 / €17.4) million. The agency also tacked a year on the ban preventing him from serving as Tesla chairman.

Speaking of that role, Tesla has 45 days from when the settlement is finalized before Musk has to resign as chairman. The company’s board reportedly hasn’t had any serious discussions on who will replace Musk, but some board members have  thrown their support behind James Murdoch who is the son of Rupert Murdoch and the CEO of 21st Century Fox.

  • Mr. EP9

    Because threatening to quit you didn’t like the deal is such a reasonable and completely rational response. Bravo Elon, really showed your board who’s boss. If that is true about James Murdoch, let it happen. It’s not like things couldn’t get any crazier over at that company. But please, Tesla, surprise me.

    • Zandit75

      Please don’t give him more ideas!

  • ErnieB

    He is starting to remind me of Steve jobs..

  • Enter Ranting

    Don’t let the door hit ya where the good lord split ya!

Canadian Gets A Big Assman Decal On His Pickup – And It’s NOT What You Think

It’s actually the man’s surname, but it’s listed as one of the names banned by the Saskatchewan Government Insurance.

Top 5 Things You Need To Know About The 2019 Porsche Macan

The facelifted Macan brings enhanced styling, a new infotainment system and a revised 2.0-liter turbo four.

2019 Kia Cerato/Forte Hatch Is A Good Buy – But Can It Excite You?

The all-new Kia Cerato offers good value for money and a very decent ride, so it should be enough for most.

This Man Bought A Rolls-Royce Phantom For $80K, So How Did It Turn Out?

Instead of a brand-new Lincoln Navigator, you can get a modern Rolls – if you’re brave enough.

2019 Geneva Motor Show A-To-Z Of All New Cars And Concepts

A round up of all the production and concept cars debuting at the Geneva Motor Show.

Thank God We’ll Never See An Urus-Based Pickup Truck. Right Lambo?

Lamborghini has made an SUV, but won’t build a pickup – or at least we hope so.

Mother And Kids Almost Hit By Car Braking In The Snow

This incident in Canada could have been much worse if the car hadn’t come to a stop in time.

BMW M850i Vs. Mercedes-AMG S63 Coupe Drag Race: Davai!*

The M850i and S63 Coupe go head-to-head in Russia – and their race has a clear winner.

Climb Aboard The Fully-Working, Life-Size Lego Bugatti Chiron

Powered by 2,304 tiny motors from the Lego Power Function series, the model can hit a top speed of 12 mph.

Could These Spy Shots Provide Our First Look At Rivian’s Future Off-Roader?

Rivian’s third model will be more capable off-rioad than both than the R1T and R1S.