Business, Judge approves Elon Musk settlement with SEC

It all started as an April Fools' Day prank

It all started as an April Fools' Day prank

The saga between Tesla CEO Elon Musk and the U.S. Securities and Exchange Commission, which began with a now infamous "funding secured" tweet about taking the electric automaker private, is officially resolved. A settlement was then reached which required Musk to pay $20 million, with Tesla paying a further $20 million. Musk is credited for establishing and growing Tesla at a time when the US automakers are struggling to fend off competition from foreign rivals.

By around 1730 BST, Tesla shares were 4.17% higher at $270.41.

One thing is for certain: If this isn't all an elaborate troll (which it might be!) Elon Musk's graphic design skills still need some work.




Tesla shares, down about 11% in 2018, were up about 1% in early Wednesday trading. The deal also calls for Musk to remove himself as Tesla chairman within 45 days and can't be re-appointed for a minimum of three years. In the end, Musk and Tesla agreed to settle the charges "without admitting or denying the SEC's allegations". The plan called for their combined $40 million in penalties to be distributed to harmed shareholders through a court-approved process, the SEC has said. Two new independent directors will be recruited to join Tesla's board of directors. "That's our goal. I think we made really good progress in that direction. the drive unit that is going out now and for the last several months have been excellent".

Tesla did not respond to a request for comment. The electric sedan starts at $35,000 for the standard version. Tesla is banking on the Model 3 to turn a profit. Buyers who pre-order the feature get a discount compared with those who wait for it to become available.

Watch Tesla trade in real time here.

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