Tesla shares jump on Model 3 numbers, Musk deal

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In a shock announcement in August, Tesla CEO Elon Musk announced that he has weighed taking the electric vehicle company private at $420 a share. The complaint had sought his removal as chief executive as well.

The SEC announced the deal on Saturday - two days after it sued Musk in federal court for misleading investors over his post on Twitter last month that he was considering taking Tesla into private ownership.

Tesla shareholders, Tesla fans, and Tesla customers all breathed a sigh of relief this week when it announced that founder and CEO Elon Musk had reached a settlement with U.S. regulators.

Following the announcement that Musk would settle and step down as chairman, Tesla's stock stabilised after its 14 percent drop, shooting back up 15 percent at $305 per share.

Tesla sharply boosted the number of vehicles rolling off the assembly line between July and September, the electric auto maker said Tuesday.

Things could have actually been a lot worse for Tesla and Musk, with experts highlighting the fact that he's retained his CEO position, is still the dominant stockholder and still has a place on the board.

Musk, 47, told employees in an email on Sunday that the company was "very close to achieving profitability and proving the naysayers wrong", but still needed to execute on the last day of the quarter.

However, Musk has agreed to a condition where he will not admit nor deny if he was guilty of committing the securities fraud.

Musk will step down as chairman of Tesla for three years, starting in November.

Lawyers said the settlement and size of the fine might give more ammunition to short-sellers pursuing separate cases against Musk for manipulating company shares through the August 7 tweet, as well as to a probe by the Justice Department.

Pursuant to recent reports, Tesla (NASDAQ: TSLA) and its CEO, Elon Musk have to bow down to charges and have acquiesced to pay $40 million along with subsequent concessions.

The Model 3 sedan is key to the money-losing company's growth and profit plans and underpins its goal of eventually becoming a mass-production automaker.

Stephanie Avakian and Steve Peikin, co-directors of the SEC's Enforcement Division, led the talks, taking the reins from the staff attorneys who worked the case, according to two people familiar with the matter.

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