Tesla shares spike after Elon Musk settles with SEC

Elon Musk to Resign as Chair of Tesla Board but Remain CEO

Tesla shares spike after Elon Musk settles with SEC

As part of the deal, Musk and Tesla will also both pay $20 million, while the former will neither admit nor deny the allegations.

Tesla stock (NASDAQ:TSLA) is exhibiting a strong recovery on Monday, trading up 15.40% at $305.54 per share during the opening bell.

The $40 million in financial penalties "will be distributed to harmed investors under a court-approved process".

Musk's tweet about taking his company private, along with attacks on critics on social media, raised concerns with investors about whether Musk has become too focused on criticism from so-called short-sellers who had been making bets against him and Tesla.

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. Tesla will appoint an independent chairman, two non-executive directors... Musk said August 7 in a company blog post that he was considering taking Tesla private at $420 per share, representing a 20% premium over the stock price following the company's second-quarter earnings release.

"When companies and corporate insiders make statements, they must act responsibly", SEC Chairman Jay Clayton said.

He will stay on as chief executive of the company.

Tesla shares took a steep dive last Friday, plunging 13.90% amidst news of the SEC's lawsuit against the outspoken CEO.

USA securities regulators settled a lawsuit against Musk alleging that he made false and misleading statements about plans to take the company private in August. On Saturday, the SEC released an update announcing that Musk had accepted a settlement for his lawsuit.

He's made these assurances in large part due to progress Tesla has made in producing more Model 3 sedans - the first electric vehicle Tesla has tried to mass-manufacture.

"The open board chairperson role creates an opportunity for Tesla to potentially put someone in place that is capable of influencing Musk and helping Tesla reach sustainability", Munster said.

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