Economy

Elon Musk commits to SEC settlement despite mocking tweets

Elon Musk commits to SEC settlement despite mocking tweets”

This is what some institutional investors have always been calling for, contending that the board has failed to sufficiently govern the chief executive officer and that Musk may be stretched too thin, running Tesla as well as the rocket manufacturer SpaceX, where he's also both CEO and chairman.

James Murdoch, who serves as a director on Tesla's board, is set to end his innings as 21st Century Fox's CEO.

The report also says external options are also being considered.

Musk last month agreed to relinquish his role as chairman of electric-vehicle manufacturer Tesla for three years as part of an agreement with the SEC to resolve a securities-fraud case. He's still CEO, however. Months after the beverage was initially mentioned in Elon Musk's dark-humored April Fool's Twitter post, though, Tesla has now filed an application with the US Patent Trademark Office to trademark the alcoholic beverage.

"An officer's celebrity status or reputation as a technological innovator does not give license to take those responsibilities lightly".

"The Tesla chairman job is ideal for James", one source told the FT.

Murdoch is now a non-executive director on Tesla's board. In addition, he stepped down as chairman of United Kingdom -based satellite TV operator Sky following its sale to Comcast.

Murdoch will not join his father, Rupert Murdoch, and his brother Lachlan at "New Fox" - the entity remaining after 21CF's sale of assets to Disney is completed.

Tesla faces a crucial moment as it struggles to produce its Model 3 sedan in large volume and deliver it quickly to customers amid an ongoing cash crunch that has concerned some analysts.

Terms of the settlement also require "implementation of mandatory procedures to oversee and preapprove Mr. Musk's Tesla-related written communications that reasonably could contain information material to the company or its shareholders", and goes on to demand an "experienced securities lawyer" who will enforce and approve Musk's communications - including tweets.

Shares of Tesla closed Thursday down 1.8 percent at $252.23 as the Dow Jones Industrial average dropped over 500 points.



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