The Securities and Exchange Commission (SEC) went after Tesla and CEO Elon Musk last week, tanking the company’s stock. But over the weekend a settlement was reached, and now Tesla stock prices are soaring once more.
As part of the agreement, Musk has to step down from the chairman role but will stay on as CEO. Tesla and Musk each will pay a fine of $20 million. That might seem like a bad thing, but it’s better than the toll of a long fight with the SEC. Instead, Tesla can focus its resources on building all those Model 3 orders.
Speaking of which, the Bloomberg Tesla Model 3 Tracker claims only 1,899 cars were built last week. That’s a huge drop from the surge during the summer, casting doubt on if Tesla can sustain the kind of production levels necessary to bring the automaker into the mainstream.
Instead of being the big boss all around, Musk will have to share power with a new chairman of the board. How that works out will be interesting.
Before you think Tesla’s completely out of legal trouble, it’s important to know there’s still a criminal investigation led by the Department of Justice. Nobody knows what the outcome of that investigation will be.