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

Terre Haute
Scattered Clouds
93° wxIcon
Hi: 93° Lo: 70°
Feels Like: 105°
Robinson
Scattered Clouds
90° wxIcon
Hi: 91° Lo: 69°
Feels Like: 104°
Indianapolis
Broken Clouds
92° wxIcon
Hi: 92° Lo: 71°
Feels Like: 101°
Rockville
Scattered Clouds
93° wxIcon
Hi: 91° Lo: 67°
Feels Like: 105°
Casey
Broken Clouds
89° wxIcon
Hi: 91° Lo: 68°
Feels Like: 100°
Brazil
Scattered Clouds
93° wxIcon
Hi: 92° Lo: 70°
Feels Like: 105°
Marshall
Scattered Clouds
93° wxIcon
Hi: 92° Lo: 69°
Feels Like: 105°
Excessive Heat this Weekend, Rain On the Way.
WTHI Planner
WTHI Temps
WTHI Radar

Latest Video

Image

Sunday Morning Weather Update

Image

Community collecting bottle caps for memorial benches

Image

Shelter needs help after kittens dumped

Image

Lemonade Day

Image

Mike Hanna Street Vault

Image

Ride Across Indiana

Image

People deal with heat at 4-H fair in Martinsville

Image

People sweat it out to enjoy Clinton Grand Prix

Image

Saturday Morning Weather Update

Image

Sullivan

WTHI Events