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Ladies and gentlemen today is a great day for tesla the company all right elon musk has made a very very wise decision today here we go here guys tesla ceo elon musk will step down as chairman of the electric automaker and pay a twenty million dollar fine under a settlement reached with the securities and exchange commission musk will remain ceo musk will resign
From his role as chairman of the tesla board within 45 days of the agreement which was filed here on saturday he has agreed not to seek reelection or accept an appointment as chairman for at least three years an independent chairman will be appointed under the settlement agreement nestle will pay a twenty million dollar penalty according to the sec the sec said the
Charge and fine against tesla is for failing to require disclosure controls and procedures relating to muffs tweets must doesn’t have to admit or deny the scc’s allegations as part of the agreement which i think is a big thing there tesla has also agreed to appoint two new independent directors to its board and establish a new committee of independent directors
And put in place additional controls and procedures that oversee must communications according to the sec this likely means that musk who frequently turns to twitter to unveil new products features updates and sometimes even you know some sales numbers and things like that on his multiple companies will be more restricted moving forward at least when it comes to
His tweets about tessa the resolution is intended to prevent further market disruption and harm to tesla shareholders says a co-director of the scc’s enforcement division all right on this is a this is a really good day for tests okay if you aren’t if you haven’t been following this story basically you know elon musk had this agreement on the table and he said no
I don’t want to take this i’m gonna fight this case okay and i think this was going to be the worst decision in the history of maybe business okay this was something that could take down a company that has such huge opportunity in front of it in that so many people view as such an important company – for the fear for the future you do not fight the sec you do not
Fight the sec well if they have some dirt on you and they say hey here’s a settlement and it’s a slap on the wrist type thing you take that man you take that and you just say okay i’m good with it i think you know a lot of people feel like elon musk is the iron man out there right and i think he might have been believing it for a minute there and sometimes when you
There are certain there are certain entities out there and if they have some stuff on you and they’re they want to settle with you you take that settlement you do not fight them because what was gonna happen was the sec was gonna come out him hardcore if this had to actually go to court okay they filed in the southern district of new york that’s a big deal in itself
All right so what they were gonna do they were gonna remove him as tesla ceo and they were gonna bar him from being a high-ranking executive of any public company for the future and they may have tried to put on a bar where he could literally for the rest of his life maybe not even be a high-ranking executive this was gonna be a horrible thing okay this was going
To be an awful awful situation there because if you think about this right so much of tesla the company rides on elon musk he’s such an important character and if you take him out of all the executive roles that tessa you have a you know a shell of the company right and then you can say well maybe he could have been a much lower role right and maybe he could have
But you know that the chances elan musk is also ain’t gonna you know be on a much lower role in tesla that that’s really you know that’s not gonna fly right yeah he still wants to be boss you can’t all sudden put him at a way lower role and then you have a new ceo come in and kind of bossing around it’s just an ugly situation right so they were gonna make him you
Know leave from tesla’s and being the ceo they were gonna make him block him from being an executive of any public company they were gonna block him from being on the board of directors of tesla or maybe any company moving forward any type of public company all right they’re gonna go after him from much bigger fines in a twenty million dollar testifying believe me
On that they’re gonna go further they were going to go straight to the big bank account okay so when i looked at this this is what he was facing if he wanted to actually you know make a real case out of this and this is not worth it man this is not worth it this was a good move by elon musk to take this settlement here’s where we’re at with tesla now okay so he’s
Gonna be removed as chairman of the board so which means there’s gonna be a new chairman of the board which means there’s going to be better oversight of the company is also going to be two independent directors i think this is a good thing overall for tesla tesla is at a stage where they have an opportunity to become a very very big company in the future okay a
Massive goliath type company when you become such a big company that becomes so important it’s not just like when you start up a company and it’s for yourself right when you look at tesla and you think about electric vehicles in the future and you think about how many people this might affect and you think about you know energy generation and solar and some of
Those type of things right these are such big opportunities out there and these have the chance to affect hundreds of millions if not billions of people on this earth over the next coming decades right when you have that type of company and it’s gonna have this type of power you want to make sure it succeeds in the future and i think a good board of directors helps
Our company succeed in the future some of the best biggest companies out there have very very strong board of directors and they help kind of oversee things they help appoint executives they help you know give guidance to the company in a lot of different situations and whatnot where’s eli you know elon and tesla has gone from a stage where you know it was nothing
Pretty much irrelevant company right you know if we go back here you know seven eight years ago tesla was pretty much an irrelevant company they were just kind of coming up and now all of a sudden over the past seven eight years this company has grown a lot and also now they’re producing more electric vehicles and some car companies produce actual ice vehicles and
This is already there may even come out with model why and what not so when you start to look to the future you can see there’s there’s a potential there’s company to be absolutely massive but if you have you know a ceo who’s got nobody over overseeing him and kind of saying no don’t do that i can’t do this and then those types of things you could be you could be
Looking at a situation where the the cards come crumbling down and everything is ruined all because of you know it’s some tweets out there and some bad information and that’s that would be a horrible situation that company i has this type of potential a company that’s moving that’s moving the entire electric wave at such a faster rate like if it wasn’t for tesla
Believe me all the auto manufacturers out there would not be focused on electric cars right now and now all of them are saying hey man we got to start making electric cars we gotta start making electric cars you have big companies big automakers now saying though the future is electric everything’s going to be electric in the future this wouldn’t we would not be
In this place without tesla you know could all these companies focusing on on self-driving cars we wouldn’t be here if it wasn’t for tests okay so this you know the whole the whole system was at jeopardy of falling down if tesla did not if elon musk did not agree to this settlement this is a great day for it for anybody that the tesla fan out there you should be
Very happy with this settlement you don’t fight the sec i know a lot of people were not we’re not familiar with the stock market and not very familiar with the sec and whatnot there are a few entities you don’t fight out there you don’t fight the sec they want to settle with you you settle with them okay that’s just the way it goes you do not try to fight them in
The court of law it’s i i’m probably not gonna end up well for you in the end okay so you know i’m just happy i’m happy that this is the way it all played out because this was going to take a really ugly turn for tesla and i didn’t want to have to see the company go down that route so good job elon musk the rumor is he wouldn’t listen to his lawyers the other day
That’s why he didn’t settle he watched my video late last night when i released in the middle of the night he’s like you know what jeremy’s right i’m gonna settle this thing good job elon musk i’m happy let me know what your guys opinion is on this on down there in that comment section thank you for watching and have a great day
Transcribed from video
ELON MUSK MAKES GREAT MOVE FOR FUTURE OF TESLA By Financial Education
