SAN FRANCISCO: Tesla and its CEO Elon Musk have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company.
The settlement with the Securities and Exchange Commission allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years.
Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticized Tesla’s board for being too beholden to Musk.
The deal was announced Saturday, just two days after SEC filed its case seeking to oust Musk as CEO.
Musk, who has an estimated $20 billion fortune, and Tesla, a company that ended June with $2.2 billion in cash, each are paying $20 million to resolve the case, which stemmed from a tweet Musk sent on Aug. 7 indicating he had the financing in place to take Tesla private at a price of $420 per share.
“A reckless tweet cost a lot of money — the $20-million tweet,” said Michelle Krebs, executive analyst at Autotrader.
The deal could remove one cloud that hangs over Tesla. Investors fretted about the company’s ability to cope without Musk, a charismatic entrepreneur whose penchant for coming up with revolutionary ideas has drawn comparisons to one of Silicon Valley’s most revered visionaries, Apple co-founder Steve Jobs.
Tesla’s stock plummeted 14 percent Friday after the SEC filed its lawsuit, erasing more than $7 billion in shareholder wealth. Many analysts predicted the shares were bound to fall even further if Musk had been forced to step down. Tesla’s stock has dropped 30 percent since Aug. 7, closing Friday at $264.77.
The steep downturn in Tesla’s market value may have influenced Musk to have an apparent change of heart and negotiate a settlement. Musk had rejected a similar settlement offer before the SEC sued Thursday, maintaining he had done nothing wrong when he posted a tweet declaring that he had secured the financing to lead a buyout of Tesla.
The SEC alleged Musk wasn’t close to locking up the estimated $25 billion to $50 billion needed to pull off the buyout.
Musk and Tesla reached their settlement without admitting to or denying the SEC’s allegations.
The resolution “is in the best interests of our markets and our investors, including the shareholders of Tesla,” SEC Chairman Jay Clayton said in a statement.
A Tesla spokeswoman said the company and Musk had no comment Saturday.
Besides paying a fine and stripping Musk of his chairman’s title, Tesla also must appoint two more directors who have no ties to the company or its management. Musk will be allowed to remain on the board.
The company also must clamp down on Musk’s communications with investors, a requirement that might make its colorful CEO’s Twitter posts slightly less interesting.
“Considering the drastic punishment the SEC had announced, Musk and Tesla got lucky,” said Krebs, the Autotrader analyst. “Musk at least remains at the helm of the company, and adding a couple of board members is a good thing.”
The SEC also got what it wanted by bringing the combative Musk down a notch and taking steps to tone down his off-the-cuff remarks while forcing Tesla to expand its board to counterbalance its CEO’s power, said Carl Tobias, a law professor at the University of Richmond. Besides being CEO, Musk owns a roughly 20 percent stake in Tesla.
“Maybe this will make Musk stop acting so crazy and fly right,” Tobias said.
Besides tweeting about a deal that the SEC alleged he didn’t have money to pay for, Musk had been engaging in other erratic behavior that had been raising questions about whether he should remain CEO.
Musk had raised hackles by ridiculing stock market analysts for posing fairly standard questions about Tesla’s shaky finances, and calling a diver who helped rescue 12 boys on a Thai soccer team from a flooded cave a pedophile, triggering a defamation lawsuit. He was also recently caught on a widely circulated video apparently smoking marijuana , a legal drug in Tesla’s home state of California.
The erratic behavior has convinced more analysts that Tesla needs to find a replacement for Musk, but the SEC settlement will allow the company to do so on its own timetable, if it decides to hire a new leader.
Tesla is also under mounting pressure to overcome its past manufacturing problems and produce enough vehicles to become consistently profitable after years of huge losses.
A gauge of the company’s progress should come within the next few days when Tesla is expected to release its vehicle production numbers for the July-September period.
Musk has pledged Tesla would manufacture an average of 7,000 vehicles per week, enough to turn a profit.
Tesla needs to turn the financial corner because it has $1.3 billion in debt coming due during the next six months. If it keeps burning through its cash, Tesla will likely have to raise more money to pay its bills — something that analysts say will be easier to do without any lingering doubt who will be running the company.
Musk out as Tesla chair, remains CEO in $40M SEC settlement
Musk out as Tesla chair, remains CEO in $40M SEC settlement
- The settlement allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years
- The deal was announced Saturday, just two days after SEC filed its case seeking to oust Musk as CEO
Razane Jammal authors children’s book
DUBAI: British Lebanese actress Razane Jammal is set to release a children’s book titled “Lulu & Blu.”
The actress, famous for her roles in Netflix series “The Sandman” and “Paranormal,” took to social media on Sunday to share the news, writing: “What started as a little story I wrote seven years ago turned into a book for your little ones. I’ve poured my (heart) into this and I’m thrilled to invite you all to our first launch in Beirut.”
The launch event is scheduled to take place on June 25 at community space Minus 1 in the Lebanese capital. The actress will perform a reading of the children’s story, which tells the tale of a “vegetarian lioness, a friendly fish and their most unusual friendship,” according to the author.
Published by Turning Point Books, the story was illustrated by Sasha Haddad, a Lebanese illustrator who graduated from Cambridge School of Arts in 2014.
In the role that arguably shot her to stardom, Jammal played Lyta Hall in 2022’s “The Sandman,” based on the legendary graphic novels.
Her character dreams of her dead husband each night, slowly realizing that he is not a figment of her imagination but is hiding out in the dream world.
It is a part that Jammal managed to play truthfully with subtlety — a subtlety for which she credited her mother in a previous interview with Arab News.
“I’ve always been extra, and my mom was far more subtle than I am. I had to fine-tune myself to vibrate on her frequency, a frequency that was very sweet and very raw, and vulnerable and nurturing. I took that from her.
“I grew up having a simple, community-based life in a place where you have 500 mothers and everyone feeds you and you feel safe — even if it’s not safe at all. At the same time we went through so many traumas, from civil wars to assassinations to losing all our money in another financial crisis.”
Pakistan says armed forces ‘fully alert’ amid Israel’s ongoing conflict with Iran
- Israel attacked Iran’s nuclear facilities and military leadership last week, raising tensions in Middle East
- Deputy PM Ishaq Dar assures lawmakers Pakistan’s nuclear facilities remain safe amid ongoing conflict
ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Monday that Pakistan’s armed forces were “fully alert” amid Israel’s ongoing military conflict with Iran, vowing to safeguard the country’s nuclear assets.
Dar’s statement came as the military conflict between Iran and Israel entered its fourth day on Monday, with no signs of the two sides letting up. The worst fighting between the regional foes began late Friday when Israel carried out strikes against Iran’s nuclear facilities and military leadership. So far, Iran says 224 people have been killed due to Israeli strikes while Tel Aviv has said at least 18 people have been killed by Iran.
During a senate session, opposition lawmaker Shibli Faraz questioned whether Pakistan’s nuclear facilities were safe in light of Israel’s recent strikes against Iran, urging the government not to be complacent in safeguarding them.
“Israel dare not look to Pakistan,” Dar said in response. “By the grace of god, Pakistan has the strength to respond to a brick with a stone, to any mala fide [intentions].
“I assure my brother the armed forces of Pakistan are fully alert. As they were alert during the India-Pakistan conflict,” he added.
The deputy prime minister was referring to India and Pakistan’s military conflict last month. The two countries pounded each other with missiles, drone strikes, fighter jets and artillery fire in a military conflict that lasted for four days before Washington brokered a ceasefire on May 10.
Dar said the Pakistani nation had developed its nuclear and missile defense system at a great cost and would protect them.
“These are the nation’s assets, these are the nation’s trust. This is the trust for the coming generation,” he said. “It is our responsibility to safeguard it unitedly, which we will do, are doing and will do it together.”
Israel sees Iran’s nuclear program as a threat to its existence. It said its strikes on Friday were designed to avert the last steps to the production of an Iranian nuclear weapon.
Tehran insists its nuclear program is entirely civilian and it does not seek an atomic bomb. The UN nuclear watchdog, however, reported Iran last week as violating obligations under the global non-proliferation treaty.
Pakistan has criticized Israel in strong words and repeatedly said Iran has the right to retaliate under the UN Charter. Islamabad has also vowed to offer diplomatic support to Iran at international forums.
Suspect in shooting of Minnesota lawmakers to appear in court on murder charges
- Vance Boelter was charged with two counts of second-degree murder and two counts of second-degree attempted murder
MINNEAPOLIS: A man accused of killing a Democratic state lawmaker while posing as a police officer is expected to appear in a Minnesota court on Monday afternoon on state murder charges.
Vance Boelter, 57, is being held in Hennepin County after he was arrested on Sunday following a massive manhunt over the weekend. Boelter is accused of shooting dead Melissa Hortman, the top Democrat in the Minnesota House, and her husband, Mark, in their home on Saturday.
Authorities said Boelter was also suspected of shooting and wounding another Democratic lawmaker, state Senator John Hoffman, and his wife Yvette at their home a few miles away.
Governor Tim Walz has characterized the crimes as a “politically motivated assassination.”
“A moment in this country where we watch violence erupt, this cannot be the norm. It cannot be the way that we deal with our political differences,” Walz said.
Boelter was charged with two counts of second-degree murder and two counts of second-degree attempted murder, a criminal complaint showed. He is scheduled to appear in court at 1:30 p.m. local time, jail records showed.
Three of those charges are punishable with jail terms of up to 40 years, according to a Hennepin County criminal complaint unsealed on Sunday.
Boelter had been impersonating a police officer while carrying out the shootings, wearing an officer’s uniform and driving a Ford SUV with police-style lights, the complaint said.
Boelter fled on foot early on Saturday when officers confronted him at Hortman’s Brooklyn Park home, said authorities who had warned residents to stay indoors for their own safety and unleashed the state’s biggest manhunt.
When police searched Boelter’s SUV after the shootings, they discovered three AK-47 assault rifles, a 9-mm handgun, and a list of other public officials including their addresses, the criminal complaint showed.
Working on a tip that Boelter was near his home in the city of Green Isle, more than 20 SWAT teams combed the area, aided by surveillance aircraft, officials said. Boelter was armed but surrendered with no shots fired.
The operation to capture Boelter, drawing on the work of hundreds of detectives and a wide range of federal, state and local law enforcement agencies, was the largest manhunt in state history, Brooklyn Park police Chief Mark Bruley said during a news conference on Sunday.
The killing was the latest episode of high-profile US political violence.
Such incidents range from a 2022 attack on former Democratic US House Speaker Nancy Pelosi’s husband at their home, to an assassination bid on Donald Trump last year, and an arson attack at Pennsylvania Governor Josh Shapiro’s house in April.
OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply
LONDON/MOSCOW: OPEC said on Monday it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider OPEC+ group in 2026.
In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns.
“The global economy has outperformed expectations so far in the first half of 2025,” OPEC said in the report.
“This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis.”
OPEC also said supply from countries outside the Declaration of Cooperation — the formal name for OPEC+ — will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month’s forecast.
Lower supply growth from outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for the wider group to balance the market. Rapid growth from US shale and from other countries has weighed on prices in recent years. (
Israel furious as France shuts four weapons stands at Paris Airshow
- The stands were those being used by Elbit Systems, Rafael, IAI and Uvision
- France, a long-time Israeli ally, has gradually hardened its position on the government of Benjamin Netanyahu over its actions in Gaza and military interventions abroad
PARIS/JERUSALEM: France shut down the four main Israeli company stands at the Paris Airshow for refusing to remove offensive weapons from display, in a move condemned by Israel and highlighting tensions between the traditional allies.
A source familiar with the matter told Reuters on Monday that the instruction came from French authorities after Israeli firms failed to comply with a direction from a French security agency to remove offensive or kinetic weapons from the stands.
The stands were those being used by Elbit Systems, Rafael, IAI and Uvision. Three smaller Israeli stands, which didn’t have hardware on display, and an Israeli Ministry of Defense stand, remain open.
France, a long-time Israeli ally, has gradually hardened its position on the government of Benjamin Netanyahu over its actions in Gaza and military interventions abroad.
French President Emmanuel Macron made a distinction last week between Israel’s right to protect itself, which France supports and could take part in, and strikes on Iran it did not recommend.
Israel’s defense ministry said it had categorically rejected the order to remove some weapons systems from displays, and that exhibition organizers responded by erecting a black wall that separated the Israeli industry pavilions from others.
This action, it added, was carried out in the middle of the night after Israeli defense officials and companies had already finished setting up their displays.
“This outrageous and unprecedented decision reeks of policy-driven and commercial considerations,” the ministry said in a statement.
“The French are hiding behind supposedly political considerations to exclude Israeli offensive weapons from an international exhibition — weapons that compete with French industries.”
IAI’s president and CEO, Boaz Levy, said the black partition walls were reminiscent of “the dark days of when Jews were segmented from European society.”
Two US Republican politicians attending the air show also criticized the French move.
Talking to reporters outside the blacked-out Israeli defense stalls, US Republican Governor Sarah Huckabee Sanders described the decision as “pretty absurd,” while Republican Senator Katie Britt criticized it as “short-sighted.”
The French prime minister’s office did not immediately return a request for comment.
Meshar Sasson, senior vice president at Elbit Systems, accused France of trying to stymie competition, pointing to a series of contracts that Elbit has won in Europe.
“If you cannot beat them in technology, just hide them right? That’s what it is because there’s no other explanation,” he said.
Rafael described the French move as “unprecedented, unjustified, and politically motivated.”
The air show’s organizer said in a statement that it was in talks to try to help “the various parties find a favorable outcome to the situation.”
