Federal Judge Approves Elon Musk, Tesla Settlements With SEC
Musk, Tesla each agreed to pay $20 million to settle SEC civil charges; Musk must resign as Tesla chairman
WASHINGTON—A federal judge on Tuesday approved settlements between Elon Musk, Tesla Inc. TSLA 4.18% and securities regulators over the chief executive’s August tweet saying he had secured funding to take the auto maker private.
U.S. Judge Alison Nathan of the U.S. District Court for the Southern District of New York signed orders completing the two settlements without raising questions about subsequent tweets where he appeared to mock the Securities and Exchange Commission’s case against him.
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Mr. Musk’s lawyers and the SEC submitted a joint legal filing last Thursday saying the settlements were “fair, reasonable, and will serve the interests of the public and investors.” Judge Nathan had asked the two sides to explain why the deal should be approved.
The judge’s approval was the final step to put in place settlements requiring Tesla and Mr. Musk to pay $20 million each in fines over statements that regulators said were misleading.
Under the deal, Mr. Musk agreed to have some of his public communications vetted by the company before they are released. Mr. Musk also must step down as Tesla’s chairman and the company must add two new independent directors.
Mr. Musk’s October tweet suggested the SEC was enriching investors betting against the electric-car maker. “Just want to [say] that the Shortseller Enrichment Commission is doing incredible work,” Mr. Musk tweeted on Oct. 4. “And the name change is so on point!”
Write to Mark H. Anderson at mark.anderson@wsj.com