Tesla shares soar after Musk settles with SEC

Tesla Shares Jump Elon Musk Says Company Close To Achieving Profit

Tesla Shares Jump Elon Musk Says Company Close To Achieving Profit

A few weeks after the tweet, US' Securities and Exchange Commission (SEC) sued him for securities fraud.

By allowing Musk to stay on as CEO under the settlement, the SEC has avoided the possibility that removing Musk from Tesla could cause investors to lose faith in the company's ability to thrive without him, potentially leading to more instability in its share price and value. The electric car-making company must also appoint two new independent directors to its board, establish a new committee of independent directors and implement additional oversight of Musk's future communications.

Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC's allegations.

Amid a slew of controversies surrounding Tesla CEO Elon Musk, there comes some good news for the electric-car company's investors and staff as the tech billionaire has now said that the company is close to achieving profitability.

Musk has gained legions of fans for his bold approach to business and technology, using his 23 million Twitter followers account to promote Tesla, his rocket company SpaceX, and tunnel venture, the Boring Co. Some have argued Musk should even give up the CEO role and assume a post such as chief technical officer.

Musk allegedly tweeted "considering taking Tesla private at $420".

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Tesla shares fell more than 1 percent in recent trading Tuesday. It was one of Elon's first tweets since settling with the regulatory agency.

Tesla Inc announced record quarterly vehicle production numbers on Tuesday but warned it was facing major problems with selling cars in China due to new tariffs that will force it to accelerate investment in its factory in Shanghai.

In its statement releasing the production and delivery results, the company noted that Model 3 sales for the quarter were still limited to higher priced versions, which start at $49,000 and can reach $80,000 for fully loaded models. The basis of the SEC's suit was that Elon didn't have funding secured at all and was potentially misleading investors.

After Musk settled over the weekend, Tesla surged on Monday and closed up 17%.

The board includes includes James Murdoch, son of Rupert, and an Australian businesswoman, Robyn Denholm, who is being touted as a possible successor to Musk as chair of the board.

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