Tesla shares spike on SEC truce, strong Model 3 report

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

The commission had filed a lawsuit last week, saying Musk's tweet in August about taking the company private constituted securities fraud because Musk knew he hadn't lined up the money for the deal.

Following two tumultuous days, Musk has settled with the SEC, agreeing to step down as chairman for 3 years and add 2 new independent directors, with him and Tesla each paying a $20 million in penalties.

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 Mr Musk.

The charges come after Musk claimed in August via a series of tweets that he was planning to take the electric vehicle maker private, and implied that such a move was imminent with "funding secured". The SEC was seeking to prohibit Musk from serving as an officer or director of a public company.

Many see the forced changes as being positive for Tesla, partly because the mercurial Musk will now have someone to answer to, and partly because his reduced role may allow the chronically overworked CEO to focus more.

Today's sharp upturn in Tesla's share price served as a signal from investors that the settlement didn't put too heavy of a burden on the company's operations.

Tesla sharply boosted the number of vehicles rolling off the assembly line between July and September, the electric auto maker said Tuesday. SEC claimed that Elon's tweet was misleading and false, they say that Elon, "had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source".

Following the announcement that Musk would settle and step down as chairman, Tesla's stock stabilised after its 14 percent drop, shooting back up 15 percent at $305 per share.

Given said controversies you might have thought Musk would be keen to keep a low profile, especially with him having lost his job over his cavalier remarks.

In its statement releasing the production and delivery results, the company noted that Model 3 sales for the quarter were still limited to higher priced versions, which start at $49,000 and can reach $80,000 for fully loaded models.

Musk said in a tweet in May that the company would need to sustain production of 5,000 Model 3s per week to make a profit on the critical vehicle and to survive. As Tesla's largest shareholder, Musk is likely to retain a seat on the board and have influence in determining his successor as chair.

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