SEC Lawsuit Against Musk Wiped $7.3 Billion From Tesla’s Market Value
Musk's tweets and the idea of taking the company private was clearly aimed at the "short-sellers" who have made Tesla the most targeted stock on the United States market, and created an industry in social media campaigns against the company and Musk himself.
USA securities regulators settled a lawsuit against Musk alleging that he made false and misleading statements about plans to take the company private in August. If this doesn't hurt the board where it hurts, SEC has also pondered over the probability of removing him as an officer of the company.
Tesla in recent years has become one of the most valuable American auto maker, with its stock worth more than $50 billion.
Automotive news website Electrek reported here on Monday 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. When confronted by customers waiting for vehicles for which they've put down a payment, Musk has said Tesla is encountering difficulties delivering cars to customers due to a shortage of car-hauling trucks, but experts say no such shortage exists and that other automakers are shipping their cars around the USA just fine.
In a September 30 email, filed with the SEC on Monday, Musk said the electric vehicle maker is nearly there.
New import tariffs mean Chinese imports of Tesla vehicles now face tariffs of 40pc, compared to 15pc for other imported cars in the country.
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.
Mr Musk settled fraud charges with America's stock market watchdog and said that the company was close to profitability. Musk has told upset customers that "we've gone from production hell to delivery logistics hell", and the CEO has incomprehensibly suggested the solution is for Tesla to build its own auto carriers, despite no evidence of any shortage of vehicle haulage capacity.
Musk will reportedly buy $20 million worth of Tesla's stock at the next trading opportunity, according to a Bloomberg report, citing a person familiar with the matter.
The settlement also requires Tesla appointing two new independent directors, and Tesla setting up a "new committee of independent directors and put in place additional controls and procedures to oversee Musk's communications". "The resolution is meant to prevent further market disruption and harm to Tesla's shareholders".
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