The post appeared the same day that JudgeAlison Nathan of U.S. District Court in Manhattan asked the SEC and lawyers for Musk and Tesla to submit in writing, by next Thursday, the reasons the settlement should be approved. "Elon Musk's erratic behavior suggests that he sees it the same way". "And the name change is so on point!" he wrote. (FOX), to replace Elon Musk as the company's chairman, people familiar with the matter told The New York Times. Tesla didn't immediately respond to requests for comment.
As per SEC, Musk's statements violate the 1934 Securities Exchange Act, and that Musk "knew or was reckless in not knowing" that his tweets were not accurate and correct.
"Tesla and the board of directors are fully confident in Elon, his integrity, and his leadership of the company, which has resulted in the most successful US auto company in over a century", the board said.
The SEC, whose @SEC_News Twitter handle has about 251,000 followers to Musk'smore than 22.8 million, is also active on the messaging service but has refrained from posting about Musk or Tesla since last weekend's settlement. As per the settlement, Musk will resign within 45 days and will not contest for the position for the next three years.
The infamous 7 August tweet detailed plans to take Teslaprivate at $420 per share, a number which Musk settled on after rounding up the current share price from a 20 per cent premium due to its significance in marijuana culture.
However, Musk had been acting erratically for months even before the take-private tweet and the subsequent interviews with the Times and Rogan.
"The last several years have taught me that they are indeed reasonably maligned", he tweeted, before adding, "What they do should be illegal".
The SEC did not comment on Mr Musk's tweets, nor did Tesla. If the settlement is struck down, the SEC would likely move towards enforcement-it's unlikely they would be as lenient in that case.
But regulators chose to balance the penalty for violating securities law with investors' fervor for Musk, who is Tesla's "animating force".
Telsa board members have proposed 21st Century Fox CEO James Murdoch succeed Elon Musk as chairman.
"Tesla will establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk's communications", according to an SEC summary of the settlement.