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Elon Musk To Resign As Tesla Chairman After $20 Million SEC Fine

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Sep. 29 2018, Updated 10:18 p.m. ET

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Elon Musk is set to step-down as Chairman of car firm Tesla following an embarrassing blunder on Twitter.

He has been fined $20 million after reaching a settlement on fraud his charges.

Musk was accused of posting 'false and misleading information' to Twitter about taking his company private at $420 a share on August 7, 2018.

The maverick entrepreneur told his followers that he had secured funding and only needed a shareholder vote to proceed, but this was not the case.

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The SEC claims Musk's tweets had no factual basis damaged the stock market and hurt investors.

These latest setbacks come amid growing concerns about his health after some strange appearances, including recently on the Joe Rogan show where he smoked weed and drank whisky.

"According to Musk, he calculated the $420 price per share based on a 20 per cent premium over that day's closing share price because he thought 20 per cent was a 'standard premium' in going-private transaction," court documents submitted by the SEC said.

"This calculation resulted in a price of $419, and Musk stated that he rounded the price up to $420 because he had recently learned about the number's significance in marijuana culture and thought his girlfriend 'would find it funny, which admittedly is not a great reason to pick a price'".

He will be able to continue as the CEO of Tesla, but cannot be chairman again for another three years.

Musk will be solely responsible for paying his $20million fine, however, Tesla will have to pay a second $20million fine, and appoint two independent directors to replace him.

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