Elon Musk surrender set to boost Tesla shares

Elon Musk to give up role of Tesla chairman

Elon Musk Resigns As Chairman Of Telsa

In case you haven't been paying attention to the news, Tesla's sort of going through a rough patch at the moment: The electric auto manufacturer's founder, Elon Musk, now has the US Securities and Exchange Commission breathing down his neck, and it's safe to say that the company's seen better days.

Under the agreement with the Securities and Exchange Commission, Musk and the company each will pay a US$20 million penalty, and Musk will be barred from serving as chairman for at least three years.

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

The company has recently been struggling to meet audacious production goals for its Model 3 sedan.

After filing the lawsuit, SEC officials were anticipating a drawn-out legal battle, but settlement talks started up again late Friday after Musk's attorney Steven Farina sent an email asking to reopen the discussions.

The stock surged as much as 18% in pre-market trading and wiped away Friday's losses, when the stock closed 14% lower.

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.

Yes, Musk is a highly intelligent and influential individual, but it's clear the guy needs a nap.

Pinoys safe after Air Niugini flight crashes into sea
Air Niugini's Boeing 737-800 aircraft P2-PXE missed the runway and landed on a lagoon on Friday in Chuuk, Micronesia. Some witnesses thought the plane overshot the runway.

Tesla will now be appointing two new independent directors to its board.

In addition, Grimes' ex will be on a short leash: Tesla now gets to monitor the communications of the outspoken ex-chief gunslinger. Along with leaving, Musk has to pay a $20 million fine for a tweet he fired off saying he planned on a massive buyout of Tesla.

Investors are cheering Tesla's deal with the SEC that keeps Elon Musk as the CEO.

Elon Musk is confident that Tesla Inc.

The SEC's complaint alleged that Musk had made "false and misleading" statements, with Tesla's share price having risen on the back of Musk's tweet.

"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.

While the 15-year-old company has never earned an annual profit, Tesla's CEO has vowed it's the verge of making money and stemming cash burn that's exceeded more than $1 billion in recent quarters.

Latest News