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A4 U.S. NEWS
Monday 1 october 2018

New Tesla chair must rein in CEO Musk at key moment

By CHRISTOPHER RU- had “funding secured” for at $420 a share. The SEC’s
GABER, AP Economics Writ- taking the company pri- lawsuit charged that the
er vate. tweet, which caused Tes-
WASHINGTON (AP) — It Yet a more forceful board, la’s shares to jump, was
won’t be an easy job. coupled with a domineer- misleading because he
Whoever becomes the ing CEO like Musk, could did not actually have the
new chairman of Tesla Mo- create conflicts at a risky funding lined up for such a
tors will face the formidable time for the company. move.
task of reining in Elon Musk, Company founders such Tesla is also under heavy
the charismatic, visionary as Apple’s Steve Jobs and pressure to turn a profit be-
chief executive with an Twitter’s Jack Dorsey have cause it is burning through
impulsive streak, while also been forced out by strong $1 billion in cash every
helping Musk achieve his boards of directors, though three months and, as of the
dream of turning Tesla into both eventually returned to end of June, had just $2.2
a profitable, mass-market their companies. Musk did billion in the bank.
producer of environmen- not found Tesla but provid- Musk has said the compa-
tal-friendly electric cars. In this Dec. 14, 2016, file photo, Tesla CEO Elon Musk listens as ed early financing. ny needs to produce 7,000
Musk is giving up the chair- President-elect Donald Trump speaks during a meeting with Even with the settlement, cars a week to make mon-
man’s role under a settle- technology industry leaders at Trump Tower in New York. Tesla faces a daunting ar- ey, a target he aimed to
ment announced Satur- Asssociated Press. ray of challenges. reach in the July-Septem-
day with the Securities and A more assertive board value. The Justice Department ber quarter.
Exchange Commission. could provide the kind of The settlement stemmed has opened its own inves- The company is likely to re-
Besides a new chairman, tighter oversight that many from a lawsuit the SEC filed tigation into Musk’s Aug. 7 port production numbers
Tesla was also ordered to legal experts, and Tesla in- charging Musk with mis- tweet, this week and financial re-
appoint two new, indepen- vestors, say is overdue for a leading investors in August in which he said he would sults from that quarter in
dent members to its board. company of Tesla’s market with a tweet that said he take the company private early November.q

Kavanaugh case unfolds as DeVos readies sexual assault rule

ed on college campuses. the possibility of the accus- handle these allegations
Brett Sokolow, a lawyer er and the accused cross- on high school and col-
who heads an association examining each other. lege campuses,” said Mike
of sexual harassment in- DeVos’ new guidelines Petrilli, president of the con-
vestigators on campuses, are expected to address servative Thomas B. Ford-
said his colleagues closely whether schools should ham Institute.
watched the hearing and have to investigate as soon A Senate vote on Kava-
may use it for future train- as they are aware of al- naugh’s nomination was
ings. leged misconduct or only delayed for a week so the
“If this was a student, would after a student files a formal FBI could investigate after
I believe them, would I complaint. GOP Sen. Jeff Flake of Ari-
not?” Sokolow said. “Who Many victims of sexual vio- zona, a pivotal vote, called
comes out being cred- lence never take that step. for further investigation. A
ible?” Ford didn’t, and only acted few hours earlier on Friday,
DeVos has argued that the decades later when she Flake had said he would
policy put in place under learned that Kavanaugh support Kavanaugh, a fed-
In this Oct. 30, 2017, file photo, Secretary of Defense Jim Mattis, President Barack Obama was on a short list for the Su- eral appeals court judge.
testifies during a Senate Foreign Relations Committee on Capitol is skewed against the ac- preme Court. Ford, a California psychol-
Hill in Washington.
Associated Press. cused. She is expected to Advocates point to the ogy professor, has accused
By MARIA DANILOVA, As- mony last week by Christine issue new rules in the near Larry Nassar sexual assault Kavanaugh of pinning her
sociated Press Blasey Ford and Supreme future. scandal at Michigan State to a bed while he was in-
WASHINGTON (AP) — Chok- Court nominee Brett Kava- At stake is whether schools University and say that vic- toxicated, trying to remove
ing back tears, she testified naugh came as Education should require higher stan- tims are shocked and un- her clothes and placing a
that he sexually assaulted Secretary Betsy DeVos con- dards of evidence when willing to relive their trau- hand over her mouth as
her. Defensive and angry siders new guidelines that handling complaints and matic experience. They say she tried to yell for help.
and choking back tears, he could drastically change whether both parties should it should be the school’s Ford says the incident took
swore that he did not. the way allegations of sex- have access to that evi- responsibility to investigate. place more than 35 years
The dramatic Senate testi- ual violence are investigat- dence. Also under review “It is the debate that we ago when they both were
is the use of mediators and are having about how to in high school.q