Tesla board shakeup seen as 'important Step' in governance

Elon Musk becomes ‘absolute unit’

Tesla has announced sweeping changes to its corporate structure that would weaken the power of its founder Elon Musk and cut some of his strongest allies from the board of directors.

Lawyers for the Securities and Exchange Commission asked the court to find Musk in contempt for violating a settlement order that requires Musk's tweets to be approved by a lawyer if they disclose important company facts. But their dispute is far from over: The SEC has since accused Musk of flouting other settlement terms and is looking to hold him in contempt.

In a hearing earlier on April 4, Nathan suggested that both sides "take a deep breath, put on your reasonableness pants" and secure a workable solution.

The board has come under closer scrutiny since August, when CEO Elon Musk tweeted that he had lined up funding and was considering taking the Palo Alto, California-based company private at $420 per share.

Much of the debate Thursday centered around whether the SEC rules offer a means that was clear for Musk to ascertain whether or not could be material to shareholders and, thus, need preapproval.

Friday, Tesla Inc (NASDAQ:TSLA) said that 4 members of its 11-member board would be leaving over the next 2 years, as the EV company looks to streamline its board.

Citing risks: Block China Mobile from US, FCC chairman says
China Mobile was looking to build interconnection facilities in the United States , not necessarily a full-blown wireless network. It's unclear whether or not other commissioners feel the same way about China Mobile as Pai.

"This is a first good step, but there's more work to do", said Waizenegger.

Meanwhile, Tesla's stocks fell 8 percent Thursday after the company stated it churns out 77,100 vehicles well behind the speed it has to maintain to fulfill Musk's pledge.

The 13-word tweet said Tesla would produce around 500,000 vehicles this year.

Tesla's Friday filings say the outgoing board members include Linda Johnson Rice, the chairman and CEO of Johnson Publishing, who joined the board in 2017. The SEC did not respond to requests for comment on that tweet.

The departing members include Antonio Gracias and Stephen Jurvetson, two longtime friends of Mr Musk who are also directors in his space launch company SpaceX, and Brad Buss, who was chief financial officer of Mr Musk's solar installation firm SolarCity. Musk and Tesla each paid $20 million in fines as part of a settlement with the SEC over the unfounded information.

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