Billionaire technology entrepreneur Elon Musk has made plenty of headlines in the past few weeks. On Friday, April 01, the Tesla Inc. CEO shared a stream of controversial tweets suggesting the stock price for the electric car company “is too high,” thus prompting a 10% plunge in the carmaker’s shares. This rather risqué move, which Bloomberg analysts describe as reminiscent of Musk’s 2018 posts that securities regulators sued him over in 2018, came just days after Tesla announced it is foregoing directors & officers (D&O) insurance for the 2019 to 2020 year.
In a securities filing on Tuesday, April 28, Tesla announced its intention to forego D&O insurance rather than pay the “disproportionately high premiums quoted by insurance companies”. Instead CEO Musk has agreed to personally provide coverage for any legal defense and settlement costs. The exact statement in the securities filing reads: “Elon Musk agreed with Tesla to personally provide coverage substantially equivalent to such a policy for a one-year period, and the other members of the board are third-party beneficiaries thereof.”
You've reached your limit - Register for free now for unlimited access
To read the full story, and get unlimited access to Insurance Business website content, just register for free now. GET STARTED HERE
Already a website member? Log in below.