Tesla Shares Jump; Elon Musk Says Company Close To Achieving Profit

Tesla Shares Jump; Elon Musk Says Company Close To Achieving Profit

Tesla jumped in pre-market trading after Elon Musk settled a U.S. 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. Musk initially vowed to fight the charges, but after Tesla's stock cratered on Friday, Musk backtracked and settled the case on Saturday.

Nelson told FOX Business the settlement, which is still subject to court approval, "reflects certainty Musk is going to remain with the company in the CEO role".

Initially, Musk was ready to accept SEC's proposed settlement that stipulated he would step down as chairman for two years and pay between $5-10 million as a fine.

You see, even with offerings like the Toyota Prius and Nissan Leaf, the idea of a market-friendly electric vehicle that's both stylish and fun-to-drive has never been more mainstream than it has with Musk and Tesla leading the charge.

Teenager Attacked by Shark in San Diego
The group applied pressure to the wounds while beachgoers called paramedics, who put the victim in a helicopter. A 13-year-old boy was attacked by a shark while lobster diving off the coast of Encinitas Saturday morning.

In the immediate aftermath of the "funding secured" tweet, Tesla stock rose by six per cent.

"This is a good resolution for Tesla stakeholders", Ben Kallo, an analyst at Robert W. Baird & Co. with the equivalent of a buy rating on the shares, said in an email. Secondly, the company's board will also appoint two new independent directors, with a new committee dedicated but not limited to regulating Musk's communications as he remains CEO. Achieving those milestones would be a rebuke to may on Wall Street who have insisted that Tesla would need to raise additional funds in the coming months.

Musk and Tesla each will pay a penalty of US$20 million, with the total US$40-million penalties to be "distributed to harmed investors under a court-approved process". Musk won't be eligible to be re-elected as chairman for three years.

The SEC's complaint alleged that Musk had made "false and misleading" statements, with Tesla's share price having risen on the back of Musk's tweet. The SEC said the company had no way to determine if his tweets contained information that must be disclosed in corporate filings, or if they contained complete and accurate information. But it quickly became clear that Musk's funding commitment-supposedly from Saudi Arabia's sovereign wealth fund-was informal at best.

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