SEC Lawsuit Against Musk Wiped $7.3 Billion From Tesla’s Market Value

Elon Musk to give up role of Tesla chairman

Shares of Tesla Inc jumped 18 percent on Monday as signs it had met targets for quarterly auto production added to relief at Chief Executive Elon Musk's settling of a lawsuit with regulators that had threatened to force him out.

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

Shares of Tesla jumped almost 16% today after chief executive Elon Musk settled with the US Securities and Exchange Commission (SEC) over charges of misleading investors, heading off moves to force him out. Musk will be able to continue as CEO, but the SEC's aim is to give Tesla's board more independence from Musk-and hence to subject Musk to more vigorous oversight. The SEC claims that Musk's actions caused "significant market disruption".

He accepted the deal with the SEC "without admitting or denying the allegations of the complaint", according to a court document. It alleged that Musk's statements - including the assertion that he had "funding secured" to take Tesla private - "were premised on a long series of baseless assumptions and were contrary to facts that Musk knew". On Friday, its stock dropped nearly 14 per cent. Musk had wanted to personally pay the fine for money-losing Tesla but the SEC rejected that proposal, the person said. Tesla's Denver drivers' club president Sean Mitchell said on Twitter that a team of "30 volunteers were providing 40 [plus] hours helping deliver and teach new owners" about the cars' different features.

"The ideal chairman is someone with operational experience in the automotive industry because that's really where they've struggled, on the operational side in terms of the model 3 ramp", CFRA analyst Garrett Nelson said.

Flake casts key vote but asks for Federal Bureau of Investigation inquiry
Ramirez and she has agreed to cooperate with their investigation", Ramirez's attorney, John Clune, told CNN and other outlets . Gallagher confirmed via phone to The Associated Press that it was her, and she consented to the use of her name.

However, the CEO of Tesla, of course, Elon Musk may resume this position within 3 years and managed to remain as the CEO of Tesla.

The Justice Department has opened its own investigation into Musk's August 7 tweet, in which he said he would take the company private at $420 a share.

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. Tesla is required to appoint two new independent directors to its board.

Under the agreement with the Securities and Exchange Commission (SEC), Musk and the company each will pay a $20m penalty, and Musk will be barred from serving as chairperson for at least three years.

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