Musk Sees "Victory" Tuesday, SEC Deal: Tesla Jumps

Musk Sees

Elon Musk has agreed to settle the securities fraud charge by the U.S. Securities and Exchange Commission (SEC) in a settlement that includes removing Musk as chairman at Tesla, and Musk and Tesla paying fines, the SEC said on Saturday in what analysts see as one of the fastest such settlements.

This is only the midpoint of his Musk-sational 2018 narrative.

Tesla jumped as much as 19% to $315.45 at 7:45 am NY time, more than enough to offset Friday's 14% plunge.

With its meteoric rsie, Tesla has practically recovered the losses it incurred last week after the SEC announced that it was filing a lawsuit against Elon Musk over his "funding secured" Twitter announcement last August. Tesla did not immediately respond to a request for comment and Musk could not immediately be reached for comment.

Yes, Musk is a highly intelligent and influential individual, but it's clear the guy needs a nap. The appointment of two new Board members, as well as the creation of a committee tasked with "placing additional controls and procedures to oversee" Musk's communications, were warmly received by the Tesla community as well.

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The charges come after Musk claimed in August via a series of tweets that he was planning to take the electric vehicle maker private, and implied that such a move was imminent with "funding secured".

"The ideal chairman is someone with operational experience in the automotive industry because that's really where they've struggled, on the operational side in terms of the model 3 ramp", CFRA analyst Garrett Nelson said.

Over the weekend, Musk emailed his staff to tell them to "ignore the distractions" and to claim that Tesla is "very close" to finally becoming profitable.

Moreover, Both Tesla and Musk will pay $20 million in fines that will be distributed in a court-approved process to the investors that were potentially harmed by Musk's Twitter activity. Musk won't be eligible to be re-elected as chairman for three years.

In order to "achieve a victory beyond all expectations, Tesla must go "all out" on production on Sunday which marks the end of the quarter, Musk said". "The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", said SEC enforcement division co-director Steven Peikin.

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