New York
UJ Business
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Investors celebrated Tesla’s agreement with the SEC, which allows Elon Musk to remain in his position as CEO.
The stock price jumped 17% on Monday, effectively recovering from Friday’s losses.
Over the weekend, Musk reached a settlement with the SEC, which mandates he resign as Tesla’s chairman and pay a fine of $20 million.
According to the settlement, pending court approval, Musk can continue as CEO but must relinquish his chairmanship within 45 days and will not be eligible for reelection for three years, as stated in court documents.
He accepted the settlement “without admitting or denying the allegations in the complaint,” as outlined in a court filing.
Additionally, Tesla (TSLA) agreed to pay a $20 million settlement related to claims of inadequate oversight of Musk’s tweets.
Last week, Musk was charged by the government for making “false and misleading statements” to investors on Twitter regarding supposed funding to take the company private.
Aside from the settlement developments, Tesla is also approaching an important milestone this week.
The company is expected to release third-quarter production figures, which will indicate whether the production rate achieved at the end of the second quarter — producing 5,000 Model 3 cars weekly — was an anomaly or a sustainable trend.
