By Elena J. Despotopulos

On September 27, 2018, the Securities and Exchange Commission (SEC) filed charges against Tesla Chairman and CEO Elon Musk for violating federal securities laws. See Complaint, SEC v. Musk, No. 1:18-cv-8865 (S.D.N.Y. Sept. 27, 2018). Two days later, after filing charges against Tesla itself, the SEC announced it had reached a settlement with both Musk and Tesla. Press Release, U.S. Sec. & Exch. Comm’n, Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge (Sept. 29, 2018). Pending judicial approval, the settlement will remove Musk as chairman for three years, force Tesla to appoint two new independent directors to Tesla’s board and cost both Musk, and Tesla $20 million in penalties. Id. . . .