Business Futurism News

Elon Musk is planning to spend $20 Million to buy Tesla stock

Elon Musk, Tesla

Tesla CEO Elon Musk is planning to purchase $20 million worth of stock in his own company. The news comes via a filling made on Wednesday in response to the electric carmaker’s recent spate with the U.S. Securities and Exchange Commission.

This information comes via a 8-K document, that details a settlement agreement between Musk, Tesla and the SEC. The settlement has received the final approval from a judge on Tuesday, and is now in effect. It involves Musk and Tesla playing $20 million apiece in fines.

Separate and apart from the settlement, Elon has notified Tesla that he intends to purchase from Tesla, and Tesla expects that it will issue and sell to Elon, $20 million of Tesla’s common stock during the next open trading window at the then-current market price.

Meanwhile, Musk is also stepping down as the chairman of the company’s board of directors. He also won’t be able to become chairman for at least three years. Of course, he will continue as the company’s CEO and will also keep a position on the board.

However, SEC has also insisted on having two other independent board members — perhaps in the hopes that the new independent directors along with the new chairman of the board, will be able to keep Musk’s outburst in check.

Tesla will also be monitoring and pre-approving Musk’s communications through channels such as Twitter and the company blog. That is certain to hold a certain sting for the usually firebrand Elon Musk, maybe even more than any of SEC’s other stipulations. Interestingly, Musk has refrained from admitting or denying any of the SEC’s allegations.

You can read the full settlement report by clicking here.