Tesla shares jump after Musk settles with SEC

Investor's Corner					Tesla community comes together for final end-of-quarter Model 3 delivery push

Tesla shares are expected to rebound today after Elon Musk was forced to stand down as chairman in a boardroom shake-up at the electric carmaker.

This is only the midpoint of his Musk-sational 2018 narrative. Achieving those milestones would be a rebuke to may on Wall Street who have insisted that Tesla would need to raise additional funds in the coming months. The SEC charges against Musk shaved about $7 billion off Tesla's value.

But, like any responsible parent, the SEC doesn't give a sh*t if Elon likes them or not.

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

According to the SEC, "no disclosure controls or procedures" were put in place "to determine whether Musk's tweets contained information required to be disclosed in Tesla's SEC filings".

In addition, Grimes' ex will be on a short leash: Tesla now gets to monitor the communications of the outspoken ex-chief gunslinger.

Tesla shares had sank last week after the SEC filed a lawsuit accusing Musk of securities fraud and demanding the Silicon Valley billionaire be removed his role as chief executive.

Separately, Tesla agreed Saturday to pay $20 million to settle claims it failed to adequately police Musk's tweet. Munster pointed out that the terms of the settlement actually works in Tesla's favor, as the appointment of a new, capable Chairman of the Board could help Tesla reach sustainability, as well as become the wake-up call that Musk needs with regards to his behavior online.

But several experienced litigators said on Monday that, while the DOJ probe is separate, the SEC's settlement could mark the end of official action against Tesla and Musk.

In emails leaked to CNBC, Musk hinted that Tesla was "very close" to being profitable and told staff to "ignore the distractions".

"The total package of remedies and relief announced today are specifically created to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors", said Stephanie Avakian, co-director of the SEC's Enforcement Division. In addition to appointing an independent chairman, Musk will be ineligible to be re-elected as chairman for three years.

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