Elon Musk surrender set to boost Tesla shares

Elon Musk surrender set to boost Tesla shares

Tesla has turned to an army of volunteers to help it meet ambitious third quarter vehicle production targets after a bruising few days for chief executive Elon Musk, who was forced to pay $20m in order to settle a dispute with United States regulators.

Musk will reportedly buy $20 million worth of Tesla's stock at the next trading opportunity, according to a Bloomberg report, citing a person familiar with the matter.

And while it's bad news for Musk, people on Twitter have been quick to point out how a single tweet lost the world's leading electric auto company its visionary chairman.

According to The Washington Post, the SEC had offered similar settlement terms a week prior to the lawsuit that Musk passionately declined, saying the "unjustified action" left him "deeply saddened and disappointed".

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.

Still, despite the ever-present controversy and turmoil surrounding Musk and his baby, Tesla still has a ton of believers on social media.




In order to avoid similar inconvenience in the future, the company will also hire a lawyer that will not only monitor the communication of Musk but also oversee his tweets.

That's all on top of Tesla's hard-to-watch 2-year struggle to meet production goals on their new Model 3 (though, they did meet their Q3 goal).

Musk, whose tweets on August 7 on a plan to take Tesla private that was later abandoned, has tweeted only once since the settlement was announced - posting a music video by rap group Naughty by Nature.

Initially, Musk was ready to accept SEC's proposed settlement that stipulated he would step down as chairman for two years and pay between $5-10 million as a fine.

"We are very close to achieving profitability and proving the naysayers wrong, but, to be certain, we must execute really well tomorrow (Sunday)", Mr Musk wrote in a mail to employees on Saturday.

Nelson told FOX Business the settlement, which is still subject to court approval, "reflects certainty Musk is going to remain with the company in the CEO role". Tesla has never reported a net profit and has been burning through cash since it was created in 2003.

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