Tesla to distance itself from CEO, says Musk's "financial situation" won't affect IPO

It's no secret that Tesla's chief executive officer Elon Musk is experiencing some difficulties right now. From the messy divorce to reports that he's broke, Musk has recently made headlines for all the wrong reasons. That's precisely why Tesla Motors hope to distance itself from the CEO as it moves ever closer to its IPO.
On Wednesday, Tesla submitted an amended filing to the Securities and Exchange Commission (SEC). In the filing, the company noted the current issues surrounding Musk. In order to distance itself from Musk, the company insisted that its plans for an IPO have not changed and it does not rely upon Musk for any further funding at this time.

Here's what the company said of Musk in its amended SEC filing:
We do not believe that Mr. Musk's personal financial situation has any impact on us. We have not received any funding from Mr. Musk for the past 12 months and are no longer dependent on the financial resources of Mr. Musk to fund our expected growth given the funds available under DOE loan facility and the expected proceeds of this offering.
Tesla's SEC filing also touched on the divorce situation, noting that, "We also do not believe that Mr. Musk would have to liquidate a significant percentage of his holdings in order to satisfy any settlement reached in connection with such proceedings." When Reuters attempted to contact Tesla for a response, a spokesman said that the company could not comment beyond the SEC filing. For Tesla, the troubles with Musk are certainly a distraction and causing quite a stir as the company moves towards one of the most anticipated IPO's of the year. If you'd like to pick through Tesla's entire amended SEC filing, click here.

[Source: Reuters, Securities and Exchange Commission]

More Information