Elon Musk to Tesla workers: Perform for profit, prove 'naysayers wrong'

Elon Musk to Tesla workers: Perform for profit, prove 'naysayers wrong'

Elon Musk to Tesla workers: Perform for profit, prove 'naysayers wrong'

Shares of Tesla (TSLA) spiked Monday after the SEC settled a lawsuit accusing the company's founder and CEO Elon Musk of defrauding investors when he tweeted last month that he was considering taking the company private.

The Securities and Exchange Commission asks Musk to remain the CEO of Tesla but only if he steps down from the position of Chairman for three years. As part of the settlement, Tesla will name two new, independent directors to its board.

Neither Musk nor Tesla admitted or denied the SEC's findings as part of the settlement, which still must be approved by a court.

As part of fraud case settlement, company founder will continue as CEO of electric vehicle firm, with new "independent chairman" appointed.

Lawyers said the settlement and size of the fine might give more ammunition to short-sellers pursuing separate cases against Musk for manipulating company shares through the August 7 tweet, as well as to a probe by the Justice Department.

Tesla first met a long-held target of 5,000 vehicles per week at the end of June after a series of production bottlenecks and delays.

Right now, Tesla stock has a Hold analyst consensus rating with only 7 recent Buy ratings.

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

Given said controversies you might have thought Musk would be keen to keep a low profile, especially with him having lost his job over his cavalier remarks.

Tesla is expected to release third-quarter production this week, and investors are watching to see if it hit targets for the Model 3, a high-volume vehicle.

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.

Investors were reassured as Elon Musk's Tesla reached a deal with regulators over the weekend.

The board includes includes James Murdoch, son of Rupert, and an Australian businesswoman, Robyn Denholm, who is being touted as a possible successor to Musk as chair of the board. Andrew Doane, who has a Model S sedan, Model X crossover and Model 3 auto and is president of the Tesla Owners Club of the Mid-Atlantic region, mustered club members to pull shifts at delivery hubs in Virginia and Maryland, and worked one himself.

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