Tesla founder and CEO Elon Musk will step down as chairman of the publicly traded electric car maker after the Securities and Exchange Commission (SEC) launched an investigation into Musk’s handling of the company. The SEC had alleged that Musk had misled shareholders after he had said he would take Tesla private. Musk had also claimed he had already received such funding. No concrete evidence was ever provided of this, but Musk said Saudi investors had verbally agreed to do so.
While Musk has to give up his chairman of the board position, he still remains at the helm of the company as CEO.
Musk has faced several difficulties in the past year. Tesla has been plagued by production issues this year as well as volatility in its share price. Musk also faced controversy after his appearance on The Joe Rogan Experience podcast in which he appeared to take puff a marijuana joint. The US Air Force threatened an investigation into it as government contractors (as Musk is one given his leadership of SpaceX) cannot use drugs even in states where it is legal.
