Tesla founder Elon Musk will step down from his role as the firm's chairman and pay a $20 million (around Rs 146 crore) penalty as part of a settlement with the American Securities and Exchange Commission (SEC) over a charge of securities fraud. Musk will remain CEO but will lose his Chairman seat as part of the settlement with SEC.
In addition to Gore, Munster also suggested former Boeing CEO Jim McNerney as a possible person to step in as chairman.
Musk said that he had "funding secured" for a buyout of the electric-car company at $420 a share, reports The New York Times. According to Musk, it'll do about 95kph in less than two seconds and can reach a top speed of over 400kph.More news: Red Sox 'know what's coming' regardless of their playoff foe
The stock was up 17.1% to $309.95 per share at 2:59 p.m. EDT.
Tesla saw its stock price plunging after the SEC filed a lawsuit against Elon Musk over his now infamous "funding secured" tweet. The agency backed off from ousting him as chief executive officer. In addition, Tesla agreed to appoint two more independent directors to its board, and exercise more control over Musk's statements on social media as well as via more traditional channels of corporate information.
Tesla's most active high-yield bond issue traded up 2.5 cents to 86.75 cents on the US dollar early Monday, the biggest gain since August 2.More news: North and South Korea begin removing landmines along border
Musk said he has received broad investor support for the move. "The total package of remedies and relief announced today are specifically created to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors", Stephanie Avakian, Co-Director of the SEC's Enforcement Division.
Analysts hoped the deal, which enforces oversight of Musk's public communications, would put an end to several months of turmoil that has prevented investors from focusing on a business that churned out a reported 80,000 cars in the third quarter.
In response to this current wave of bustle, the company, as well as Musk, haven't released any statement or tweet.More news: Netflix considering interactive films and TV shows