Tesla shares soar after Musk settles with SEC
- 6 years ago
The stock price of electric carmaker Tesla has soared after founder Elon Musk settled fraud charges with the U.S. Securities and Exchange Commission.
Shares went up more than 17 percent on Monday, making back nearly all of the losses that occurred last Friday in the wake of the SEC's lawsuit against Musk.
The SEC claimed Musk had mislead investors when he tweeted he secured funding to take Tesla private.
Both sides agreed to a settlement over the weekend, which requires Musk to step down as the firm's chairman for at least three years, although he will be allowed to stay on as CEO.
Both Musk and Tesla will also have to pay 20 million-dollar fines.
Neither Musk nor Tesla is required to admit any wrongdoing as part of the settlement, which is subject to court approval.
Shares went up more than 17 percent on Monday, making back nearly all of the losses that occurred last Friday in the wake of the SEC's lawsuit against Musk.
The SEC claimed Musk had mislead investors when he tweeted he secured funding to take Tesla private.
Both sides agreed to a settlement over the weekend, which requires Musk to step down as the firm's chairman for at least three years, although he will be allowed to stay on as CEO.
Both Musk and Tesla will also have to pay 20 million-dollar fines.
Neither Musk nor Tesla is required to admit any wrongdoing as part of the settlement, which is subject to court approval.