Published: Tue, October 02, 2018
Money | By Armando Alvarado

Tesla shares soar after Musk settles with SEC

Tesla shares soar after Musk settles with SEC

Under the agreement with the Securities and Exchange Commission (SEC), Musk and the company each will pay a $20m penalty, and Musk will be barred from serving as chairperson for at least three years. This continues a pattern of trade Musk's mood swings. Following the tweet, Tesla's stock jumped 6 percent leading to intervention by the SEC.

KitGuru Says: Many had taken Musk's $420 reference to marijuana as a joke given his recent experience with the substance, however his position of responsibility makes comments about his business a hard subject, especially given its effects on the stock market. That's above the level it held during Thursday's trading hours, just before the SEC announced that it was charging Musk with securities fraud.

Musk's tweets and the idea of taking the company private was clearly aimed at the "short-sellers" who have made Tesla the most targeted stock on the U.S. market, and created an industry in social media campaigns against the company and Musk himself.

Looks like one careless tweet has costed Musk dearly!

Electrek, an electric vehicle blog, reported that Tesla churned out 80,000 vehicles, citing sources familiar with internal figures.

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

"It is important we accelerate the transition to sustainable energy", Musk said.

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That could limit consumer choice or shut out upstart companies that can't afford to buy access to the fast lane, critics say. California's measure is likely to face a legal challenge from internet companies.

Musk, 47, finished the day $1.7 billion richer, with a $23.2 billion fortune. Whether Tesla made a profit likely will not be known until it reports financial results for the quarter.

That's all on top of Tesla's hard-to-watch 2-year struggle to meet production goals on their new Model 3 (though, they did meet their Q3 goal).

Denholm is CFO at Telstra, and has been audit committee chairwoman at Tesla.

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

"We believe Musk's settlement with the SEC is positive for all stakeholders and should allow TSLA to return its focus to producing quality cars", Baird analyst Ben Kallo said.

The electric auto maker is this week expected to reveal how many vehicle deliveries it made during the three months ending in September in an announcement that is being closely scrutinised by investors.

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