Tesla shares jump after SEC settlement leaves Musk as CEO

SEC Lawsuit Against Musk Wiped $7.3 Billion From Tesla’s Market Value

SEC Lawsuit Against Musk Wiped $7.3 Billion From Tesla’s Market Value

In case you haven't been paying attention to the news, Tesla's sort of going through a rough patch at the moment: The electric vehicle manufacturer's founder, Elon Musk, now has the US Securities and Exchange Commission breathing down his neck, and it's safe to say that the company's seen better days.

Tesla jumped in pre-market trading after Elon Musk settled a United States lawsuit over his take-private tweet storm, reassuring investors that the billionaire will keep calling the shots at the electric-car maker he's said is on the verge of profitability.

Tesla Inc. shares rebounded from last week's US lawsuit over Elon Musk's take-private tweets, as a settlement ensured the billionaire will keep calling the shots at the carmaker he's said is on the verge of profitability. Monday's gains erased Friday's 14 percent plunge after the SEC filed its lawsuit late on Thursday.

Tesla shares sank last week after the SEC accused Mr Musk of securities fraud, opening up the prospect of a long-drawn out fight that could have seen Tesla lose its leader, undermine its ability to raise capital and cripple operations.

Musk is giving up the chairperson's role under a settlement announced Saturday with the Securities and Exchange Commission.

"Shareholders with Tesla will be able to go to sleep tonight knowing the Musk will remain at the helm of the company". He and Tesla will pay $20 million each, and the company will have to find an independent chairman to replace Musk, who will stay on as CEO.

Klopp unhappy with use of VAR in Chelsea loss
Signed in the summer from Stoke City for a paltry £13m, the Swiss midfielder has made a bright start to life on Merseyside. Here are three key battles that could decide the outcome at Stamford Bridge on Saturday.

The tweet suggested Musk would take Tesla off the stock market.

"The $40 million in penalties will be distributed to harmed investors under a court-approved process", the SEC said. Hitting production and delivery targets has become increasingly important for Tesla's relationship with Wall Street investors after the auto maker struggled to increase production to meet demand of its new Model 3 electric vehicle.

"The new independent chairman and board members should dramatically improve corporate governance and widen the pool of potential investors", Baird's Kallo said.

As part of the settlement, Tesla will appoint an independent chairman, two independent directors, and a board committee to set controls over Mr Musk's communications under the proposed agreement.

While the 15-year-old company has never earned an annual profit, Tesla's CEO has vowed it's the verge of making money and stemming cash burn that's exceeded more than $1 billion in recent quarters.

Recommended News

  • Who is Nobel Medicine Prize victor  James P Allison?

    Who is Nobel Medicine Prize victor James P Allison?

    James Allison in 1993, when he was conducting research at UC Berkeley on a promising immunotherapy now reaching fruition. T-cells are a type of white blood cell that play a central role in the body's natural immunity to disease.
    Lil Wayne's 'Tha Carter V' is here and it's really long

    Lil Wayne's 'Tha Carter V' is here and it's really long

    He has decided that his birthday, September 27, is the best moment to do this and he announced the plan to his fans. Will Tha Carter V really, finally be released? Both Wayne and James have come a long way since 2004.
    Rosenstein's job to be topic of Thursday meeting with Trump

    Rosenstein's job to be topic of Thursday meeting with Trump

    Friday night, Rosenstein spoke with White House counsel Donald McGahn, according to a person familiar with the discussions. McCabe was sacked by Sessions in March after the Justice Department's internal watchdog accused him of misconduct.
  • Sabarimala verdict may be a bombshell for Kerala govt

    Sabarimala verdict may be a bombshell for Kerala govt

    In July, the Supreme Court was told by the temple board that it had no right to interfere with the temple practices. The case came up for hearing seven years later in 2016 and was referred to a Constitution bench in February 2017.
    For sexual assault survivors, tips for dealing with onslaught of triggering news

    For sexual assault survivors, tips for dealing with onslaught of triggering news

    She said that Kavanaugh's declaration of "innocence" and lack of sexual inactivity in high school on Fox News is a lie. In his response email, Koegler wrote, "I remember you telling me about him, but I don't remember his name".
    Meghan Markle refuses to

    Meghan Markle refuses to "lower herself" to meet with half-sister Samantha

    It was also claimed by the source that Meghan has attempted to deal with Samantha in the past who she claims is "very jealous". Again, we're talking about a simple gesture of shutting a vehicle door, but you don't mess with Royal protocol.
  • Tesla shares jump after Musk settles with SEC

    Tesla shares jump after Musk settles with SEC

    Tesla jumped as much as 19% to $315.45 at 7:45 am NY time, more than enough to offset Friday's 14% plunge. In the immediate aftermath of the "funding secured" tweet , Tesla stock rose by six per cent.

    Kanye West announces New Name - YE

    West made the pronouncement hours before he performed on the season premiere of " Saturday Night Live " (more on that in a bit). Later, West lamented at the lack of balance in media and Hollywood, estimating that 90 percent of both industries are liberal.
    Barbados on alert for Tropical Storm Kirk | Caribbean

    Barbados on alert for Tropical Storm Kirk | Caribbean

    Rainfall totals from four to six inches, with isolated totals up to 10 inches, are possible through Friday from Barbados and St. On the forecast track, the center will move over the Lesser Antilles within the Tropical Storm Warning area Thursday night.
  • 'Some players care more than others': Mourinho on Manchester United's poor form

    'Some players care more than others': Mourinho on Manchester United's poor form

    Manchester City midfielder Phil Foden will be kept waiting before being offered a new five-year contract, the Daily Star reports . With his performances I am absolutely sure he will have a very good season. "We have to look at ourselves as players.
    Trump on Kim: Tough talk ... 'and then we fell in love'

    Trump on Kim: Tough talk ... 'and then we fell in love'

    Sanctions were directly referenced by Ri as a barrier to bilateral progress and as an example of US efforts to coerce the DPRK. By contrast, Trump in his remarks to the assembly on Tuesday, thanked Kim "for his courage and for the steps he has taken".
    Demoted Clemson QB Bryant says he'll transfer

    Demoted Clemson QB Bryant says he'll transfer

    I tend to agree with most of Boyd's thoughts. "I feel like it's what's best for me and my future", Bryant said in the interview . Bryant has 461 passing yards with two touchdowns and one interception, to go along with 130 rushing yards and two rushing TDS.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.