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Musk Says Tesla Close to Profitability, Former SEC Official Calls Musk "Numbnut"

•, by Mike Mish Shedlock

Elon Musk settled a SEC lawsuit on Saturday after Musk walked away from a better deal on Friday.

"It is not clear why Mr. Musk changed his mind so quickly," said the New York Times.

I speculate the Tesla board demanded Musk settle.

Regardless, Musk got off lightly given the SEC filed fraud charges and threatened to bar Musk from being a CEO of a public company ever again.

The terms of the settlement are slightly tougher than those that two people briefed on the talks said Mr. Musk had rejected on Thursday, which called for a two-year bar on serving as chairman and a $10 million fine. [It's now $20 million].

Tesla, which is also settling with the S.E.C., will pay a $20 million penalty. The company was not charged with any fraud.

In addition, the company will add two independent directors and take steps to monitor Mr. Musk's communications with investors. It will also create a permanent committee of independent directors to monitor disclosures and potential conflicts of interest.

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