Tesla's SEC deal provides ammunition for USA probe, investor lawsuits

Elon Musk to give up role of Tesla chairman

The deal eases uncertainty over Tesla's future while removing Musk from a key role at the automaker he's led to become one of the most valuable in the world.

Tesla Inc's settlement with US regulators will help soothe investors calling for more oversight of Chief Executive Elon Musk, experts said, even as it gives ammunition to short-sellers pursing separate cases and to a probe by the Justice Department.

The surrender spared Mr Musk from potentially being ousted from Tesla, a prospect that had rattled investors and sent the company's shares sharply down at the end of last week.

Coming under pressure from his lawyers and investors of Tesla, tech billionaire Elon Musk has agreed to step down as chairman of the company for three years and pay a $20 million fine in a deal with the USA stock market regulatory authority, Securities and Exchange Commission (SEC), to resolve securities fraud charges.

Automotive news website Electrek reported here that Tesla had produced 53,000 of its Model 3 sedans in the third quarter, up from 28,578 in the previous three months and making good on a promise in August it would produce 50,000 to 55,000 of the cars. The shares closed at $307.52 on Thursday before the SEC announced its enforcement action over the tweets, in which Musk said he had "funding secured" to take the company private at $420 a share.

Shares of Tesla jumped 18% on Monday as signs it had met targets for quarterly production numbers added to relief at Chief Executive Elon Musk's settling a lawsuit with regulators that could have forced him out.

Tanushree Dutta is not happy with Priyanka Chopra's tweet in her support
"Given the recent developments, I am putting together a team of lawyers and advocates to defend my interests". According to the actress, this incident took place on the film sets of Horn OK Pleassss in 2008.

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".

Musk and Tesla must each pay $20 million in fines, which will be distributed to traders who were harmed by the tweets.

"We believe Musk's settlement with the SEC is positive for all stakeholders and should allow TSLA to return its focus to producing quality cars", Baird analyst Ben Kallo said.

The settlement requires that Tesla appoint two new independent directors and establish a committee of independent board members.

Tesla and Musk ended up accepting harsher penalties than the SEC originally proposed to settle the claims, according to the person familiar with the deal.

The Securities and Exchange Commission (SEC) sued the billionaire and all parties reached an agreement on Saturday night.

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