This had to be done with a view to settle fraud charges slapped on the company by USA financial regulators.
Tesla shares plunged the following trading day and closed down 5.1 percent on April 2. We're apparently living in a timeline where the visionary CEO of the most well-trusted space exploration company on the planet, the man who nearly singlehandedly jump-started a new space race, is so unpredictable and seemingly unhinged that a n off-hand Tweet about creating mecha must be treated with the same deadly seriousness as the time he was stuck in traffic and announced he was going to start a company to drill giant holes in the ground, then did it. Under terms of the settlement with the USA regulators, Musk is not allowed to be re-elected as chairman for three years and Tesla has to appoint two new independent directors to its board.
While Judge Alison Nathan's approval was largely expected, some weren't so sure as Musk showed little signs of curbing his Twitter behavior - and even took jabs at the SEC after they reached their proposed settlement.
"Just want to that the Shortseller Enrichment Commission is doing incredible work", Musk, a frequent critic of investors betting against the company, wrote.
If you wanted to rip off Elon Musk's idea for Tesla-branded tequila, you may be out of luck. After questions began to swirl around the truthfulness of Musk's claims, Tesla share price fell almost 30 percent in the weeks after.
Under the settlement announced on Sept.29, Tesla must appoint an independent chairman, two independent directors and a board committee to control Musk's communications. The electric automaker is steadily increasing the number of Model 3's it's building each week.
Reps from Tesla declined to comment. Customers who want the standard range battery can order a higher-priced version of the vehicle or wait for the lower priced version to become available.