Home » Money

Elon Musk's $2.4 billion windfall as Tesla shares bounce back

02 October, 2018, 21:58 | Author: Lawrence Cooper
  • Article Image Elon Musk Resigns as Chairman Order to Pay $20 Million Fine

Tesla shares plunged around 14 percent on Friday, the day after the SEC charged Musk with misleading investors, and are down 30 percent since his August 7 tweet saying he was considering taking the company private at $420 a share.

According to the settlement, Tesla and Musk will pay $20m each to financial regulators and Musk will step down as chairman but remain as chief executive.

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.

The $40 million of penalties paid by Musk and Tesla will be distributed to investors harmed by Musk's tweet.

According to The Washington Post, the SEC had offered similar settlement terms a week prior to the lawsuit that Musk passionately declined, saying the "unjustified action" left him "deeply saddened and disappointed". Musk is Tesla's largest investor, holding a 20-percent stake in the 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.

Lawyer: Cardi B gets summons but didn't hurt anyone
It is thought that Cardi will be charged for allegedly ordering an attack on two bartenders at a NY strip club called Angels. According to TMZ , Cardi will reportedly be charged for allegedly ordering an attack on two people.

Dustin Johnson excited to battle Tiger Woods, but not just yet
He knows that himself and, therefore, expects to have someone nearly as a chaperone when the gun goes off. Phil Mickelson, who also has a losing record (18-20-7), joined Woods , DeChambeau and Patrick Reed.

Tiger Woods breaks five-year title drought
NBC saw a 206% ratings jump from 2017 after Tiger Woods won the PGA Tour Championship in dramatic, come-from-behind fashion. Horschel closed the gap to four shots after after a four-under-par final round 66, but Woods looked to be in control.

Including the Model S and Model X, Tesla produced 80,142 vehicles and delivered 83,500. The SEC's complaint alleged that Musk had made "false and misleading" statements, with Tesla's share price having risen on the back of Musk's tweet.

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 auto and to survive.

Tesla stock rose 17.3 per cent to $US310.70 after a 14 per cent plunge on Friday. It was one of Elon's first tweets since settling with the regulatory agency.

Model 3 production, while impressive, is still also far below the target Tesla set itself in its Q2 investor update. Since starting the production of the electric sedan a year ago, the Model 3 ramp has been beset by multiple challenges, including bottlenecks in both the Fremont factory and Gigafactory 1.

Lawyers said that the settlement and size of the fine might give more ammunition to short-sellers pursuing separate cases against Musk for manipulating the company's shares through the August 7 tweet, as well as to an investigation by the US Justice Department.

Recommended:

  • Raj Kapoor's wife, Krishna passes away

    Raj Kapoor's wife, Krishna passes away

    It is believed by many who knew this remarkable lady closely that she allowed her "Showman Husband" to take her for granted. Riddhima Kapoor Sahni, daughter of Rishi and Neetu Kapoor, took to Instagram to share pictures of her grandmother.
    This Is Why Fortnite Vaulted Those Weapons For Season 6

    This Is Why Fortnite Vaulted Those Weapons For Season 6

    There is nothing to replace them just yet, but you can be sure new weapons and items will take their place in future updates. Players who get close enough to the lake will now get swept up in a whirlwind that lifts them up to the now-floating island.

    Standalone Oculus Quest VR Headset Arrives Next Spring

    It uses a total of four cameras in the headset to track the space around you, along with the controllers. Oculus Quest will also feature two redesigned controllers that have been fitted with touchpad control.
  • Ashley Young says Manchester United must bounce back quickly for Valencia clash

    Ashley Young says Manchester United must bounce back quickly for Valencia clash

    However, Shaw said the responsibility lies with the players. "There was no "I don't like what we're doing". Nevertheless, Mourinho insisted: "I have no complaints with the players' attitude".
    Kavanaugh and Ford Have Testified. Here's What Happens Next

    Kavanaugh and Ford Have Testified. Here's What Happens Next

    One of Judge Kavanaugh's accusers, Christine Blasey Ford , is due to appear before the Senate Judiciary Committee on Tuesday. She first used science to describe how she was certain that Kavanaugh was the boy who sexually assaulted her.
    Men: Dark Phoenix trailer released

    Men: Dark Phoenix trailer released

    Another interesting note surrounding Dark Phoenix is that both this film and Marvel's Captain Marvel movie will be set in the 90s. Wrestling with this entity inside her, Jean unleashes her powers in ways she can neither comprehend nor contain.
  • FBI probe will put trust back in confirmation process

    FBI probe will put trust back in confirmation process

    President Donald Trump ordered the additional FBI investigation Friday at the request of the Senate Judiciary Committee . It will allow the FBI to investigate allegations of sexual assault leveled against Kavanaugh by several women.
    American Bar Association seeks delay in nomination of Trump's Supreme Court pick

    American Bar Association seeks delay in nomination of Trump's Supreme Court pick

    He was also caught on tape in 2005 boasting of grabbing women by their genitals and kissing them without permission. She said Judge, who has denied any part in such an attack, jumped on them and she was able to escape.
    On Day of High-Stakes Hearing, Kavanaugh and Ford Prepare to Testify

    On Day of High-Stakes Hearing, Kavanaugh and Ford Prepare to Testify

    While another boy watched, she said, Kavanaugh tried to pull her clothes off and covered her mouth when she tried to scream. The committee also announced that Blasey Ford would be questioned by an expert sex crimes prosecutor.
  • Tesla shares jump as SEC settlement leaves Musk in CEO role

    Even after the stock's slide from last year's peak, Tesla is valued at $45.2 billion in the stock market. It wasn't immediately clear how many outlets across the US were doing record volume.
    Liverpool 1-2 Chelsea Moses plays for 90 mins

    Liverpool 1-2 Chelsea Moses plays for 90 mins

    At the London Stadium, West Ham gave Macclesfield, who now sit bottom of the entire Football League, a lesson in ruthless finishing.
    Close shave for 47 on board as Boeing lands in lagoon

    Close shave for 47 on board as Boeing lands in lagoon

    Air Niugini is Papua New Guinea's leading airline and flies to over 30 destinations both nationally and internationally. A plane has crash landed into the ocean around the tiny pacific island nation of Micronesia.


Popular

Emergency alert test going out to mobile phones nationwide
Johnson said the system will be used to notify USA citizens of certain events of "national significance". Therefore, if you have a smartphone capable of receiving WEA alerts, your phone will receive the alert.

13-year-old boy attacked by shark, airlifted to trauma center
On Sept. 15, a man died at a Cape Cod hospital after police say he was attacked by a shark off a Wellfleet, Massachusetts, beach . The attack occurred around 7am at Beacon's Beach in the Leucadia area of Encinitas, a city north of San Diego.

Lindsey Graham rips Dianne Feinstein, Democrats for 'unethical sham'
He told Kavanaugh that he hopes the nominee ends up on the Supreme Court, saying, "that's exactly where you should be". Kavanaugh said he did not question that Ford was assaulted, but said, "I have never done this to her or to anyone".

Air Niugini reports 1 dead from crash-landing after claiming all evacuated
And on Monday, the airline confirmed that divers found the body of the unaccounted man in the Chuuk lagoon's surrounding area. A Papua New Guinea accident investigation team flew to Micronesia on Friday, the Post Courier newspaper reported.

Nafta: Donald Trump says USA 'not getting along' with Canada
Trump also said at the news conference, "If Canada doesn't make a deal with us, we're going to make a much better deal". The U.S.is planning to publish the text of its deal with Mexico on Friday, three people familiar with the matter said.

Matt Damon plays petulant Brett Kavanaugh in 'SNL' season premiere
Hollywood heavyweight Matt Damon portrays an angry Kavanaugh giving an animated speech, opening with: "Let me tell you this". That's the first of many, many mentions of beer. "Well guess what, I'm not backing down, you sons of bitches".

European Union has more pressing priorities than Brexit, says French Finance minister
The commitment was seemingly ad-libbed on stage by Starmer , as it was not included in the released text of his speech. In the United Kingdom that means a vote by lawmakers, and the math looks ominous for May's minority government .

No one needs to remind me how good Hazard is, says Klopp
His impact is always obvious, but we could play football before Virgil van Dijk and we can play without Virgil, thank God. We needed time to adapt, yes. "We have to wait, he didn't train with the team so far", confirmed Klopp.

Trump wavers on U.S. Supreme Court nominee Kavanaugh
The outcome of this hearing is likely to determine whether Kavanaugh's promotion to the highest court in America is successful. This is what terrified me the most, and it's had the most lasting impact on my life.

China urges U.S. to stop 'unwarranted accusations' after Trump's meddling claim
He also said he has received historical levels of defence funding, along with emphasising that United States unemployment was low. President Donald Trump said "Iran has to come back and they have to talk" if it wants to avoid a new round of economic sanctions.