Elon Musk steps down as Tesla Chairman after Controversial Tweet
- by Claude Bryan
- in Markets
- — Oct 1, 2018
Musk's "funding secured" tweets were made on 7 August, and claimed that he was planning to take the company private at a price of $420 per share - a premium of just over 20 per cent of the company's stock price (which has since nose-dived) at the time.
Analysts were relieved on Monday at the terms of Tesla chief Elon Musk's settlement with the SEC reached over the weekend, but some remain concerned over longer-term challenges the automaker faces.
Tesla jumped in pre-market trading after Elon Musk settled a USA 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.
In the Chicago suburb of Highland Park, more than 75 people crammed into Tesla's service center and another 50 or so waited outside.
In Coral Gables, Florida, a showroom attendant who asked not to be named said deliveries were scheduled hour-by-hour to avoid congestion. The one in Brooklyn, for example, was quiet Saturday morning.
Automotive news website Electrek reported after the opening bell that Tesla had produced 53,000 of its Model 3 sedans in the third quarter, citing a source familiar with the matter.
China resolutely opposes U.S. arms sales to Taiwan: spokesperson
China also turned down a request for a port call next month in Hong Kong by a US Navy amphibious assault ship. China has denied a request for a US warship to visit Hong Kong , American officials said Tuesday.
Analysts expect Wall Street will now be able to focus more on production numbers for the Model 3 this week, with the worst case scenario of Musk being ousted off the table. Along with leaving, Musk has to pay a $20 million fine for a tweet he fired off saying he planned on a massive buyout of Tesla.
The settlement involved a hefty fine worth a total of $40 million, as well as Musk's resignation as Chairman for Tesla's Board of Directors, but it did allow him to keep his post as CEO.
The settlement marked a swift end to the SEC's lawsuit, which was filed Thursday.
"The settlements, which are subject to court approval, will result in comprehensive corporate governance and other reforms at Tesla - including Musk's removal as chairman of the Tesla board - and the payment by Musk and Tesla of financial penalties" of $20 million each, the Securities and Exchange Commission said in a statement.
"The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", SEC co-director of enforcement Steven Peikin said.
