Elon Musk to resign as chairman of Tesla

It all started with a quick hit off a joint.

Ever since the infamous interview during which Tesla CEO Elon Musk appeared to smoke marijuana, it has been all downhill for Musk, who has now announced that he will resign as chairman of the company.

False Statements

Not so long ago, Tesla and its unique chairman were the talk of the town.

But several weeks ago, Musk did an interview with Joe Rogan wherein he appeared to smoke marijuana.

Once the interview aired, shares of Tesla took a hit.

Understandably, stockholders were concerned about the mental health of their chairman.

SEC Smackdown

With no real financing in place, the planned privatization of Tesla, which once sold for over $400 per share, has been abandoned.

Additionally, since Musk made false statements, misleading investors, the U.S. Securities and Exchange Commission (SEC) decided it was time to go after him, and fined him $20 million.

In addition to the fine, Musk must step down as the company’s CEO.

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The news immediately caused concern in the investment community, with stock prices falling by double digits on Friday.

Musk may be able to come back to Tesla at some point, though, as the agreement only requires a three-year absence by Musk.

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