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Tesla Shares Jump After SEC Settlement Leaves Musk as CEO

Stock trades above close that preceded agency’s lawsuit
With settlement secured, focus shifts to quarterly deliveries

Bloomberg’s Ramy Inocencio reports on the settlement reached between Tesla and the SEC.Daybreak: Asia." (Source: Bloomberg)

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By Phil Serafino and Dana Hull

October 1, 2018 at 5:40 AM EDT

Updated on

October 1, 2018 at 9:54 AM EDT

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Tesla Inc. shares rebounded from last week’s U.S. lawsuit over Elon Musk’s take-private tweets, as a settlement ensured the billionaire will keep calling the shots at the carmaker he’s said is on the verge of profitability.

Under the agreement with the Securities and Exchange Commission, Musk and the company each will pay a $20 million penalty, and Musk will be barred from serving as chairman for at least three years. The agency backed off from ousting him as chief executive officer.

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