Elon Musk turns to army of Tesla volunteers to hit targets

CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne California

Elon Musk to leave Tesla chairman role and pay £15m fine after fraud case | ITV News

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 vehicle 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.

The settlement involved a hefty fine worth a total of $40 million, as well as Musk's resignation as Chairman for Tesla's Board of Directors, but it did allow him to keep his post as CEO.

Shares of Tesla Inc jumped almost 15 percent on Monday after Chief Executive Elon Musk settled a lawsuit from the US Securities and Exchange Commission (SEC) that sought to remove him from company management.

Tesla shares rebounded from last week's US lawsuit over Elon Musk's take-private tweets, as a settlement ensured the billionaire will keep calling the shots at the carmaker he's said is on the verge of profitability.

Loup Ventures Managing Partner Gene Munster noted that the SEC settlement is the best outcome possible from Elon Musk's "funding secured" fiasco.

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The Securities and Exchange Commission announced the deal two days after it sued Musk in federal court for misleading investors by tweeting about taking his company private. Saturday's settlement saw the SEC pull back from its demand that Musk be barred from running Tesla, a sanction that many investors said would be disastrous for the loss-making electric carmaker. According to SEC, this settlement will assist Tesla to strengthen its corporate governance and protect its investors. In addition to appointing an independent chairman, Musk will be ineligible to be re-elected as chairman for three years.

In the immediate aftermath of the "funding secured" tweet, Tesla stock rose by six per cent.

"The SEC's complaint alleged that, in truth, Musk knew that the potential transaction was uncertain and subject to numerous contingencies".

Analysts from Cowen wrote in a note over the weekend that while the settlement would likely lead to a near-term bump for Tesla shares, it could leave Musk open to future litigation - including class-action lawsuits that have already been filed. The open board chairperson role creates an opportunity for Tesla to potentially put someone in place that is capable of influencing Musk and helping Tesla reach sustainability.

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