Tesla shares surge after Elon Musk settles with SEC

Tesla shares surge after Elon Musk settles with SEC

Shares of Tesla Inc jumped almost 15 percent on Monday after Chief Executive Elon Musk settled a lawsuit from the US Securities and Exchange Commission (SEC) that sought to remove him from company management.

The regulator filed a lawsuit against Musk last week, alleging a tweet in which he claimed he'd secured funding for a buyout of Tesla at $420 per share was "false and misleading". 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.

The settlement will stand post a court approval in which Tesla and Musk neither admit nor deny the charges levied by the SEC.

Tesla has turned to an army of volunteers to help it meet ambitious third quarter vehicle production targets after a bruising few days for chief executive Elon Musk, who was forced to pay $20m in order to settle a dispute with U.S. regulators.

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 two people familiar with the matter.

Trump defends Brett Kavanaugh, wants FBI investigation 'comprehensive'
Choosing between Kavanaugh and Ford, 48 percent of American voters most believed Ford as 41 percent most believed Kavanaugh. I don't think there's anybody in America who would condone that. "And that should be the scope of it", Graham said.

"The stock was down so much on Friday because it was unclear if he would remain with the company at all given what the SEC was pushing for", said Garrett Nelson from CFRA Research.

Tesla is now looking to fill its chairman role following the company's announcement of Musk's resignation over the weekend.

'.The lawsuit could serve as a wakeup call for Musk to tone down some of his public-facing behavior, particularly on Twitter, ' Munster explained. Musk had wanted to personally pay the fine for money-losing Tesla but the SEC rejected that proposal, the person said.

Yet a more forceful board, coupled with a domineering CEO like Musk, could create conflicts at a risky time for the company.

In fact, the biggest impact will be the new chairperson of Tesla. The SEC also said that Tesla had not put any procedures in place to determine that Musk's tweets about the company were accurate or complete.

Related Articles

  • Two Koreas remove landmines at tense border

    Two Koreas remove landmines at tense border

    Seoul's Defense Ministry said the remains of about 300 South Korean, French and USA soldiers are believed to be in the area. Past rapprochement efforts were often stalled after a standoff over the North's nuclear ambitions intensified.
    Tiger Woods reflects on disappointing Ryder Cup

    Tiger Woods reflects on disappointing Ryder Cup

    Up against the strongest US team ever, according to the world rankings, Thomas Bjorn's men completely dominated the weekend. In other words, holding your nerve and being prepared to back front-runners at odds-on is the way forward in matchplay.
    Seahawks' Thomas carted off field vs. Cards

    Seahawks' Thomas carted off field vs. Cards

    Despite the missed practices, Thomas has been productive, notching three interceptions in as many games before Sunday. Thomas, though, did not appear to be on good terms with the Seahawks after the injury.
  • Amazon Makes a Big Move on Minimum Wage

    The new Amazon UK rate is also higher than the wage level recommended by the Living Wage Foundation of £8.75, or £10.20 in London. Amazon's market capitalization now stands near $1 trillion; it paid Bezos, its founder and CEO, $1.68 million a year ago .
    Walker Buehler Dominates Rockies, Dodgers Clinch 6th Consecutive NL West Title

    Walker Buehler Dominates Rockies, Dodgers Clinch 6th Consecutive NL West Title

    Pitcher Walker Buehler will start for the Dodgers, facing off against fellow right-hander German Marquez for the Rockies . Colorado does own the fourth-best road record in the National League, however trips to Chavez Ravine are no easy task.
    Shaw blasts Manchester United's 'horrendous performance' at West Ham

    Shaw blasts Manchester United's 'horrendous performance' at West Ham

    On United's plight this season, Mourinho added: "I think that some [players] care more than others". Rumours in recent days have connected former Real Madrid manager Zinedine Zidane to Old Trafford.
  • Retailer Accidentally Confirms New Chromecast by Selling it Too Early

    Retailer Accidentally Confirms New Chromecast by Selling it Too Early

    The Chrome logo on the top has been replaced with a subtle G icon, matching the Pixel lineup. Inside the box was a device that look different from the current Chromecast .
    Google announced a new game streaming service called Project Stream

    Google announced a new game streaming service called Project Stream

    According to the announcement, a limited number of users will be able to play Odyssey at no charge using their Chrome browser. Still, you can register for access to Assassin's Creed Odyssey and Project Stream today, if you're feeling lucky.
    Ramos rested for Champions League trip to conserve energy -Lopetegui

    Ramos rested for Champions League trip to conserve energy -Lopetegui

    With that and the inconsistent nature of their results right now, the price for a Real Madrid win looks a little short. "They didn't have a good match in the first half but that can happen against Sevilla because they are a great team".
  • Turkey's Erdogan says to secure east of Euphrates in Syria

    Turkey's Erdogan says to secure east of Euphrates in Syria

    Turkish President Recep Tayyip Erdogan addresses a session of the parliament in Ankara on October 1, 2018. But he expressed satisfaction that "both sides made a cautious attempt at rapprochement".
    Deontay Wilder sends message to Anthony Joshua on Good Morning Britain

    Deontay Wilder sends message to Anthony Joshua on Good Morning Britain

    I believe he's a lemon and I'm going to squeeze him nice and hard. "You was a coward, and you know this, your team knows this". But as for Fury's chances, Finkel said: "When I was handling Klitschko, I didn't think he had a chance".
    Canada, buoyed by trade deal, to push US  on metal tariffs

    Canada, buoyed by trade deal, to push US on metal tariffs

    The U.S. had demanded a sunset clause that would kill NAFTA after five years unless the countries agreed to extend it. The Trump administration officially notified Congress of the U.S. -Mexico trade agreement on August 31.