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Tesla shares fall; SEC, electric car maker both support settlement terms

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Tesla shares are lower Thursday, following the formal court submission of a joint letter from the electric car maker and the Securities and Exchanges Commission, (SEC), stating the terms of the recent settlement, were in the best interests of the company’s investors.

By around 1610 BST, Tesla shares were 2.18% lower at $251.27. The stock has been broadly lower, in recent weeks following the SEC ruling.

Joint Tesla, SEC submission

The SEC recently fined Tesla and CEO Elon Musk $20 million each, for their actions in the case where Musk tweeted about taking the company private. CEO Musk must also stand down as chairman of the US electric car maker.

“The parties believe that resolution of these cases consistent with the proposed settlement terms is in the best interest of investors, including Tesla shareholders,” the SEC and Tesla said in a court submission. “We therefore respectfully submit that the Court should accept and enter the proposed consent judgments.”

This court submission should bring an end to the case after a US judge asked Musk and the SEC to justify the agreement, before she can give it her approval.

“Tesla and Mr. Musk believe that a prompt resolution of these actions through settlement is in the best interests of investors and should be approved,” the submission adds.

Murdoch set for Tesla Chair?

Separately, an FT report suggests that James Murdoch, who is exiting as the CEO of 21st Century Fox, is the number one candidate to take on the role of Tesla Chairman.

Murdoch joined the Tesla Board in 2017, although prior to that he had no experience at all of working in the manufacturing sector, nor has he ever led a business that makes vehicles of any type.

Tesla’s Musk, however, replied to that news on Twitter with his own tweet stating “This is incorrect.”

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