Tesla Shares Jump; Elon Musk Says Company Close To Achieving Profit


The electric auto maker is this week expected to reveal how many vehicle deliveries it made during the three months ending in September in an announcement that is being closely scrutinised by investors.

Musk has gained legions of fans for his bold approach to business and technology, using his 23 million Twitter followers account to promote Tesla, his rocket company SpaceX, and tunnel venture, the Boring Co.

At Tesla dealerships in the United States and Canada, multiple showrooms took to social media to praise the volunteer workforce that had put a shift in.

Now, the company has to hire a chairman to replace Musk (something corporate governance experts have suggested for years), along with 2 new independent directors.

Curiously, and as one of the parties to the deal, Elon Musk has accepted that he can never admit or deny that he has committed fraud, which in practice means he can never publicly state that he has done nothing wrong. 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.

But the claim on August 7 that he had the funding to take Tesla private, and a subsequent U-turn, stunned Wall Street and came amid public appearances which saw Musk smoke marijuana live on air and call a British diver in the Thai cave rescue a "pedo". Musk did not found Tesla but provided early financing.

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That settlement must still be approved by a court, and does not end the Justice Department probe disclosed by Tesla into Musk's tweets or lawsuits by short-sellers and other investors alleging losses and securities law violations.

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

"The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", Peikin added. On Saturday, the SEC released an update announcing that Musk had accepted a settlement for his lawsuit. Shareholders are betting the company is on the cusp of turning a profit thanks to its lower-priced Model 3 sedan.

Musk will step down as chairman of Tesla for three years, starting in November.

In the agreement, Musk will resign as Chairman but will remain CEO and also a member of the board.