Tesla stock roars back after Elon Musk's SEC deal

Investors cheered Tesla's deal with the SEC that keeps Elon Musk as CEO.The stock surged 17% on Monda...

Posted: Oct 2, 2018 8:54 AM
Updated: Oct 2, 2018 8:54 AM

Investors cheered Tesla's deal with the SEC that keeps Elon Musk as CEO.

The stock surged 17% on Monday, more than wiping away Friday's loss.

Over the weekend, Musk agreed to a settlement with the SEC that requires him to step down as Tesla's chairman and pay a $20 million fine.

Under the settlement, which requires court approval, Musk will be allowed to stay as CEO but must leave his role as chairman of the board within 45 days. He cannot seek reelection for three years, according to court filings.

He accepted the deal "without admitting or denying the allegations of the complaint," according to a court document.

Separately, Tesla agreed Saturday to pay $20 million to settle claims it failed to adequately police Musk's tweet.

Last week, the government charged Musk with making "false and misleading statements" to investors on his Twitter account when he said he had secured funding to take the company private.

Besides the settlement news, Tesla has another milestone this week.

It is set to release third quarter production numbers that will show whether the production level it reached at the end of the second quarter — when it produced 5,000 Model 3 cars in a week — was a blip or sustainable.

— CNN's Jackie Wattles contributed to this report.

Article Comments

West Lafayette
Overcast
44° wxIcon
Hi: 52° Lo: 19°
Feels Like: 36°
Kokomo
Overcast
49° wxIcon
Hi: 51° Lo: 20°
Feels Like: 42°
Rensselaer
Overcast
37° wxIcon
Hi: 49° Lo: 18°
Feels Like: 27°
Fowler
Overcast
37° wxIcon
Hi: 50° Lo: 18°
Feels Like: 27°
Williamsport
Overcast
42° wxIcon
Hi: 51° Lo: 20°
Feels Like: 33°
Crawfordsville
Overcast
46° wxIcon
Hi: 52° Lo: 20°
Feels Like: 40°
Frankfort
Overcast
50° wxIcon
Hi: 52° Lo: 19°
Feels Like: 50°
Delphi
Overcast
46° wxIcon
Hi: 52° Lo: 20°
Feels Like: 38°
Monticello
Overcast
46° wxIcon
Hi: 51° Lo: 19°
Feels Like: 38°
Logansport
Overcast
46° wxIcon
Hi: 50° Lo: 19°
Feels Like: 39°
Brief, Sharp Cold Snap Ahead
WLFI Radar
WLFI Temps
WLFI Planner

Community Events