Tesla shares rise on Musk’s deal with regulators and Model 3 numbers

Share

It looks like Elon Musk's recent fiasco with the US Securities and Exchange Commission (SEC) has cost him a hefty fine, as well as make him lose a key position in his own company.

He told his 22 million Twitter followers on 7 August that he might take Tesla private at $420 per share and that there was "funding secured". In the settlement, Elon Musk is to pay a $20 million fine and Tesla will also pay a similar amount separately, totalling the fines to $40 million.

Tesla must also hire an independent chairman to oversee the company.

This weekend's settlement made clear that Musk was neither accepting guilt nor denying the SEC's allegations.

Shares of Tesla Inc jumped by nearly 18 percent on Monday as Chief Executive Elon Musk settled a lawsuit that had threatened to force him out and said a surge in third-quarter production had driven it to the verge of profitability.

Erdogan: US Using Pastor Brunson Issue as Pretext to Impose Sanctions
Turkish President Recep Tayyip Erdogan expressed hope that his recent state visit to Germany will improve bilateral relations. At one of the rallies on the bank of the Rhine river, demonstrators waved banners reading: " Erdogan not welcome".

Antonio Valencia 'barely speaking' with Jose Mourinho, atmosphere compared to morgue
Mourinho agreed, saying: "Exactly, (it) is a collective thing, the reason why we don't win is responsibility of everybody". I like that perspective but I don't agree totally: (it) is all of us, everybody in the club has a role to play.

Elon Musk turns to army of Tesla volunteers to hit targets
However, if found guilty, Musk stood to lose a lot more than $20m and could have been ousted as CEO of the company. Even after the stock's slide from last year's peak, Tesla is valued at $45.2 billion in the stock market.

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.

Tesla is now valued at about US$51.8 billion in the stock market, taking back the title of the top USA automaker by market capitalization from General Motors Co.

Tesla Inc (TSLA.O) 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.

The tweet suggested Musk would take Tesla off the stock market. As Tesla's largest shareholder, Musk is likely to retain a seat on the board and have influence in determining his successor as chair. In reality, by no longer being the chairperson Musk can't call board meetings nor can he set their agendas. The complaint "alleges that Musk violated antifraud provisions of the federal securities laws, and seeks a permanent injunction, disgorgement, civil penalties, and a bar prohibiting Musk from serving as an officer or director of a public company", the SEC said on Thursday when it filed the complaint at court. Tesla's showroom in Paramus, New Jersey, was closed by 8pm local time on Sunday. Musk later backtracked, claiming that the process of taking the company private would be too time-consuming. The tweets had no basis in fact, and the ensuring market chaos hurt investors, the SEC said.

Share