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Elon Musk to resign as Tesla chairman, fined $20 million

Updated: 2018-09-30 06:30
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Tesla Motors Inc Chief Executive Elon Musk pauses during a news conference in Tokyo, Japan, Sept 8, 2014. [Photo/Agencies]

SAN FRANCISCO — Tesla CEO Elon Musk and the electric car company have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company.

Tesla and Musk will each pay $20m to settle the case.

The settlement will require Musk to relinquish his role as chairman for at least three years, but he will able to remain as CEO.

The Securities and Exchange Commission announced the settlement Saturday, just two days after filing a case seeking to oust Musk as CEO.

AP

 

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