Musk out as Tesla chair, remains CEO in $40M SEC settlement

Tesla Motors CEO Elon Musk reveals the Tesla Energy Powerwall Home Battery during an event in Hawthorne, California, US, April 30, 2015. (Reuters)
Updated 01 October 2018
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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

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.


Pro-Palestinian protesters interrupt Microsoft’s 50th anniversary party over Israel contract

Updated 2 min 55 sec ago
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Pro-Palestinian protesters interrupt Microsoft’s 50th anniversary party over Israel contract

  • An investigation by The Associated Press revealed earlier this year that AI models from Microsoft and OpenAI had been used as part of an Israeli military program to select bombing targets during the recent wars in Gaza and Lebanon

WASHINGTON: A pro-Palestinian protest by Microsoft employees interrupted the company’s 50th anniversary celebration Friday, the latest backlash over the tech industry’s work to supply artificial intelligence technology to the Israeli military.
The protest happened as Microsoft AI CEO Mustafa Suleyman was presenting product updates and a long-term vision for the company’s AI assistant product, Copilot, to an audience that included Microsoft co-founder Bill Gates and former CEO Steve Ballmer.
“Mustafa, shame on you,” shouted Microsoft employee Ibtihal Aboussad as she walked toward the stage and Suleyman paused his speech. “You claim that you care about using AI for good but Microsoft sells AI weapons to the Israeli military. Fifty-thousand people have died and Microsoft powers this genocide in our region.”

 pro-Palestinian demonstrator holds a kufiyyeh as they interrupt Microsoft AI CEO Mustafa Suleyman during a presentation of the company's AI assistant, Copilot, ahead of a 50th Anniversary presentation at Microsoft headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP)

“Thank you for your protest, I hear you,” Suleyman said. Aboussad continued, shouting that he and “all of Microsoft” had blood on their hands. She also threw onto the stage a keffiyeh scarf, which has become a symbol of support for Palestinian people, before being escorted out of the event.
A second protester, Microsoft employee Vaniya Agrawal, interrupted another part of the celebration during which Gates, Ballmer and current CEO Satya Nadella were on stage — the first public gathering since 2014 of the three men who have been Microsoft’s CEO.
An investigation by The Associated Press revealed earlier this year that AI models from Microsoft and OpenAI had been used as part of an Israeli military program to select bombing targets during the recent wars in Gaza and Lebanon. The story also contained details of an errant Israeli airstrike in 2023 that struck a vehicle carrying members of a Lebanese family, killing three young girls and their grandmother.
In February, five Microsoft employees were ejected from a meeting with CEO Satya Nadella for protesting the contracts. While the February event was an internal meeting, Friday’s protest was far more public — a livestreamed showcase of the company’s past and future.
“We provide many avenues for all voices to be heard,” said a statement from the company Friday. “Importantly, we ask that this be done in a way that does not cause a business disruption. If that happens, we ask participants to relocate. We are committed to ensuring our business practices uphold the highest standards.”
Microsoft declined to say whether it would take further action.

 


Sahara desert, once lush and green, was home to mysterious human lineage

Updated 20 min 47 sec ago
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Sahara desert, once lush and green, was home to mysterious human lineage

  • Archaeological evidence indicates that these people were pastoralists, herding domesticated animals

TRIPOLI: The Sahara Desert is one of Earth’s most arid and desolate places, stretching across a swathe of North Africa that spans parts of 11 countries and covers an area comparable to China or the United States. But it has not always been so inhospitable.
During a period from about 14,500 to 5,000 years ago, it was a lush green savannah rich in bodies of water and teeming with life. And, according to DNA obtained from the remains of two individuals who lived about 7,000 years ago in what is now Libya, it was home to a mysterious lineage of people isolated from the outside world.
Researchers analyzed the first genomes from people who lived in what is called the “Green Sahara.” They obtained DNA from the bones of two females buried at a rock shelter called Takarkori in remote southwestern Libya. They were naturally mummified, representing the oldest-known mummified human remains.

A view from the Takarkori rock shelter in southwestern Libya, where two approximately 7,000-year-old Pastoral Neolithic female individuals were buried, is seen in this handout photo released on April 2, 2025. (REUTERS)

“At the time, Takarkori was a lush savannah with a nearby lake, unlike today’s arid desert landscape,” said archaeogeneticist Johannes Krause of the Max Planck Institute for Evolutionary Anthropology, one of the authors of the study published this week in the journal Nature.
The genomes reveal that the Takarkori individuals were part of a distinct and previously unidentified human lineage that lived separated from sub-Saharan and Eurasian populations for thousands of years.

HIGHLIGHTS

• Sahara was lush green savannah 14,500 to 5,000 years ago

• Isolated lineage of pastoralists inhabited ‘Green Sahara’

“Intriguingly, the Takarkori people show no significant genetic influence from sub-Saharan populations to the south or Near Eastern and prehistoric European groups to the north. This suggests they remained genetically isolated despite practicing animal husbandry — a cultural innovation that originated outside Africa,” Krause said.
Archaeological evidence indicates that these people were pastoralists, herding domesticated animals. Artifacts found at the site include tools made of stone, wood and animal bones, pottery, woven baskets and carved figurines.
The ancestry of the two Takarkori individuals was found to have derived from a North African lineage that separated from sub-Saharan populations around 50,000 years ago. That roughly coincides with when other human lineages spread beyond the continent and into the Middle East, Europe and Asia — becoming the ancestors of all people outside Africa.
“The Takarkori lineage likely represents a remnant of the genetic diversity present in northern Africa between 50,000 and 20,000 years ago,” Krause said.
“From 20,000 years ago onward, genetic evidence shows an influx of groups from the Eastern Mediterranean, followed by migrations from Iberia and Sicily around 8,000 years ago. However, for reasons still unknown, the Takarkori lineage persisted in isolation for much longer than expected. Since the Sahara only became habitable about 15,000 years ago, their original homeland remains uncertain,” Krause said.
Their lineage remained isolated throughout most of its existence before the Sahara again became uninhabitable. At the end of a warmer and wetter climate stage called the African Humid Period, the Sahara transformed into the world’s largest hot desert roughly around 3,000 BC.
Members of our species Homo sapiens who spread beyond Africa encountered and interbred with Neanderthal populations already present in parts of Eurasia, leaving a lasting genetic legacy in non-African populations today. But the Green Sahara people carried only trace amounts of Neanderthal DNA, illustrating that they had scant contact with outside populations.
Although the Takarkori population itself disappeared around 5,000 years ago when the African Humid Period ended and the desert returned, traces of their ancestry persist among various North African groups today, Krause said.
“Their genetic legacy offers a new perspective on the region’s deep history,” Krause said.
 

 


What is the International Criminal Court and how can a member country like Hungary leave?

Updated 29 min 4 sec ago
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What is the International Criminal Court and how can a member country like Hungary leave?

  • Liz Evenson, international justice director at Human Rights Watch: We expect other ICC members and particularly EU member states who are united in their commitment to the court to press Hungary hard on meeting its clear, legal obligations on arrest”

THE HAGUE, Netherlands: After giving a red carpet welcome this week to Israeli Prime Minister Benjamin Netanyahu, who is wanted by the International Criminal Court for alleged crimes against humanity in Gaza, Hungary announced it would quit the court.
Should Hungary follow through with its withdrawal from the world’s only permanent global court for war crimes and genocide, it will become only the third country in the institution’s history of more than 20 years to do so. The process will take more than a year.
Hungarian Prime Minister Viktor Orbán, who gave the Israeli leader a welcome with full military honors on Thursday in defiance of the ICC arrest warrant, signed the Rome Statute, which established the court, during his first term in office.
What is the International Criminal Court?
The ICC was established in The Hague in 2002 as the court of last resort to prosecute individuals responsible for the world’s most heinous atrocities: war crimes, crimes against humanity, genocide and the crime of aggression. It takes on cases when nations are unable or unwilling to prosecute crimes on their territory.
Hungary signed the Rome Statute in 1999 and ratified the treaty on Nov. 30, 2001.
The court’s newest member, Ukraine, formally joined in January, bringing the number of member states to 125. The United States, Russia, China and Israel are among nations that are not members.
Judges at the court have issued 60 arrest warrants and convicted 11 people. Last month, the court arrested former Philippine President Rodrigo Duterte on murder charges linked to the deadly “war on drugs” that he oversaw while in office.
What is the process for leaving the court?
The Rome Statute lays out the steps a member state needs to take if they want to withdraw from the court. The state party must inform the Secretary-General of the United Nations and the withdrawal takes effect one year after the receipt of the notification.
Announcing it will leave, however, doesn’t free Hungary from its duties under the treaty.
“There is a provision which says that your obligation to cooperate continues for the cases that were ongoing when you were still a party,” Göran Sluiter, professor of international criminal law at the University of Amsterdam, told The Associated Press. “So they still have an ongoing obligation to arrest Netanyahu,” he said.
Zsolt Semjén, Hungary’s deputy prime minister, submitted a bill to parliament to approve the withdrawal, which is expected to pass.
Just two other countries have left the court. The East African nation of Burundi left in 2017 and, in 2019, then-President Duterte withdrew the Philippines after judges allowed the investigation into his drug crackdown that killed thousands to continue.
If Hungary leaves, it will become the only country in the European Union that is not a member of the court.
Why is Netanyahu wanted by the court?
A three-judge panel issued arrest warrants in November for Netanyahu, his former Defense Minister Yoav Gallant and Hamas’ military chief, Mohammed Deif, accusing them of crimes against humanity in connection with the 13-month war in Gaza.
The warrants said there was reason to believe Netanyahu and Gallant have used “starvation as a method of warfare” by restricting humanitarian aid and intentionally targeted civilians in Israel’s campaign against Hamas in Gaza, charges Israeli officials deny.
The warrant marked the first time a sitting leader of a major Western ally has been accused of war crimes and crimes against humanity by the global court of justice and has sparked major pushback from supporters of Israel, including the US
The ICC criticized Hungary’s decision to defy its warrant for Netanyahu, with the court’s spokesperson, Fadi El Abdallah, saying on Thursday that the court “recalls that Hungary remains under a duty to cooperate with the ICC.”
Human rights groups also have condemned the move.
“Hungary still has the opportunity to arrest Netanyahu — as unlikely as that seems, there’s still time. We expect other ICC members and particularly EU member states who are united in their commitment to the court to press Hungary hard on meeting its clear, legal obligations on arrest,” Liz Evenson, international justice director at Human Rights Watch, told the AP.
Last year, Mongolia refused to arrest Russian President Vladimir Putin during a state visit. Judges ruled Mongolia had failed to comply with its obligations and referred the matter to the court’s oversight board, the Assembly of States Parties.
 

 


England, Germany and Spain on mark in women’s Nations League

Updated 05 April 2025
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England, Germany and Spain on mark in women’s Nations League

PARIS: England and Germany cruised and World Cup champions Spain downed Portugal on matchday three in the women’s Nations League on Friday.
First-half headers from Lucy Bronze and Millie Bright set England on the road to beating Belgium in Bristol, with maiden Lionesses goals from Aggie Beever-Jones and Keira Walsh and substitute Jess Park also contributing to the lop-sided 5-0 win.
The two sides meet again next Tuesday in Leuven with England manager Sarina Wiegman firmly focused on her side’s European Championship title defense and an event further ahead.
“Now, of course, every game is competitive, but you have to win because we want to get in the best possible position for the World Cup draw too,” Wiegman said.
“I would never be complacent. We’ll bring the team on the pitch that we think at that moment is the best team to play against Belgium.”
World champions Spain downed Portugal 4-2 to go second by one point to England in group A3.
Germany were also in trigger happy mood, routing Scotland at Dundee’s Tannadice Park 4-0.
Scotland conceded their first goal with less than a minute on the clock after a terrific strike from Elisa Senss.
The hosts responded well and were in the match until Scotland’s Germany-born defender Sophie Howard’s own goal.
The top seeds and third-ranked side in the world completed Scotland’s miserable night with goals from Cora Zicai and Lea Schuller.
Scotland have plenty of food for thought before round two in Wolfsburg on Tuesday.
Germany are top of their group on goal difference from the Netherlands, 3-1 winners over Austria with Sherida Spitse becoming the joint most capped European player.
France, beaten finalists to Spain in last year’s Nations League, beat women’s Euro 2025 hosts Switzerland 2-0 in St. Gallen.
Sandy Baltimore opened the scoring with Selma Bacha’s powerful long strike lifting France five points clear at the top of their group from Norway, who they face in Oslo on Tuesday.
The four League A group winners qualify for the finals in the autumn.
The group standings also determine the teams contesting promotion and relegation matches to establish their starting league position in the European Qualifiers for the 2027 Women’s World Cup, running through 2026.


How Saudi companies are redefining corporate responsibility with ESG leadership

Updated 23 min 59 sec ago
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How Saudi companies are redefining corporate responsibility with ESG leadership

  • ESG integration is transforming industries as Saudi firms leverage AI, blockchain, and biotech to drive impact
  • Private companies like SAWACO and WAYAKIT are proving that profitability and sustainability can thrive together

JEDDAH: Saudi companies across multiple industries are increasingly integrating environmental, social, and governance principles into their corporate strategies, driving sustainable growth while balancing environmental stewardship, community impact, and corporate responsibility.

This strategic shift aligns with Saudi Arabia’s Vision 2030 roadmap — a transformative economic diversification plan — and its ambitious 2060 net zero emissions target, reinforcing the nation’s position as a sustainability leader.

SAWACO Water Group exemplifies this transformation, embedding sustainability into its core operations.

“Sustainability is not just a goal; it’s a responsibility,” CEO Nizar Kammourie told Arab News, emphasizing the company’s alignment with Vision 2030’s focus on environmental and social progress.

He added: “At SAWACO, we integrate ESG into every aspect of our operations, from optimizing resource efficiency to ensuring transparent governance and community engagement.”

Underpinning this commitment, SAWACO has implemented advanced operations intelligence software to enhance energy efficiency in desalination plants.

“We are leveraging cutting-edge technology to reduce power and chemical consumption while extending the life cycle of our assets,” said Kammourie.

Nizar Kammourie, chief executive officer of SAWACO. (Supplied)

The company also tracks carbon emissions through its Remedium Platform, which supports data-driven reduction targets.

“Accurate carbon accounting allows us to set tangible, data-driven targets for reducing our environmental footprint, ensuring our growth remains responsible and sustainable,” he added.

To address resource optimization, SAWACO has partnered with a US-based firm to pioneer brine minimization technology.

“Water is one of our most precious resources, and we are committed to maximizing its use,” said Kammourie.

“Our innovative brine minimization system enhances freshwater recovery from seawater while significantly reducing brine discharge, preserving marine ecosystems and supporting coastal livelihoods.”

Governance reforms further solidify SAWACO’s ESG leadership. A dedicated committee oversees alignment with international sustainability standards such as the UN Sustainable Development Goals.

“Ethical governance is the foundation of a sustainable business,” said Kammourie “By integrating real-time data analytics, third-party audits, and stakeholder engagement into our decision-making process, we ensure accountability at every level.”

He added: “Sustainability must be measured, not just discussed. That’s why we also integrate ESG metrics into performance reviews, making it a part of our company culture rather than just a corporate initiative.

“We are not just providing water — we are safeguarding the future of water sustainability in Saudi Arabia. Our goal is to drive meaningful change that aligns economic success with long-term sustainability.”

These efforts reflect broader national momentum, as Saudi businesses bridge profitability and planetary stewardship to set new benchmarks for ESG leadership in emerging markets.

SAWACO is not just providing water, but also afeguarding the future of water sustainability in Saudi Arabia, according to its CEO. (Supplied)

Similarly, Luisa Javier, CEO of WAYAKIT, highlighted how her women-led biotechnology company has embedded ESG into its DNA, transforming hygiene solutions in aviation, transportation, and facilities management.

“We are not just creating products; we are building solutions that have a measurable environmental and social impact,” she told Arab News.  

WAYAKIT’s flagship disinfectant eliminates 99.999 percent of viruses and bacteria in just 30 seconds using 93 percent biodegradable components.

By replacing harmful quaternary ammonium compounds with biodegradable nano-modified citric acid in aircraft cleaning processes, the company says it has reduced environmental impact by 94 percent.

Dr._Luisa_Javier (left), CEO of WAYAKIT, and cofounder Dr. Sandra Medina. (Supplied)

In addition, its environmental footprint tracker measures progress in energy efficiency, water conservation, pollution reduction, and health improvements.

“Sustainability isn’t just about compliance — it’s about innovation,” said Javier. “We have to rethink traditional approaches and develop solutions that align with the future.”

WAYAKIT also integrates ESG principles into its governance and transparency measures. Its women-led C-suite strengthens decision-making diversity, while blockchain technology safeguards sustainability metrics, preventing greenwashing and ensuring accurate reporting.

“Authenticity matters,” said Javier. “Every sustainability claim we make is backed by rigorous third-party laboratory testing. We are setting a new standard for how biotech companies can be both profitable and responsible.”

DID YOU KNOW?

• The Kingdom is aiming for net zero carbon emissions by 2060, embedding ESG principles in national initiatives like Green Riyadh.

• In 2021, the Saudi Stock Exchange introduced ESG disclosure guidelines, mandating listed companies prioritize transparency.

• Saudi Electricity Co., Almarai, and Saudi Telecom Co. have embedded ESG guidelines, issuing green bonds and improving governance.

Community engagement is another cornerstone of WAYAKIT’s ESG strategy. With 70 percent of its workforce consisting of women, the company provides technical training in biotechnology and leadership development to foster career advancement for Saudi women.

“Empowering women in STEM is not just a mission — it’s a responsibility,” said Javier. “Our workforce is a reflection of what Saudi Vision 2030 aims to achieve: a thriving, innovative economy where women play a central role.”

This momentum is part of a broader national trend. A 2023 report by Saudi Arabia’s sovereign wealth fund, PIF, highlighted how Saudi organizations, particularly those within its portfolio, are spearheading ESG awareness and implementation.

Under the Saudi Green Initiative, more than 600 million trees and shrubs are expected to be planted by 2030 across the Kingdom. (SGI photo)  

The Saudi Green Initiative, launched by Crown Prince Mohammed bin Salman, supports this shift with $187 billion in investments across more than 60 programs to advance the green economy.

Through large-scale investments in green initiatives, innovative carbon reduction strategies, and community-focused programs like those led by SAWACO and WAYAKIT, Saudi businesses are proving that profitability and sustainability can coexist.

Collectively, these efforts set a new benchmark for ESG leadership in emerging markets while positioning Saudi Arabia as a global leader in sustainable development.