US judge approves SEC settlement with Tesla, Musk; shares jump

(Reuters) – A US judge on Tuesday approved an agreement between a federal regulator, Tesla Inc., and its chief executive officer, Elon Musk, on his tweets promising to take the company in camera, marking the end of the day. a tumultuous time for investors.

Tesla shares climbed 5.5% to $ 273.88 before falling back to $ 271.63 in the early afternoon on the Nasdaq. Despite the gains, the stock is still down more than 20% since August 6, the day before the day Musk announced on Twitter that he would take the company in camera and claimed to have secured the necessary funds for the make.

Judge Alison Nathan, of the US District Court of Southern District of New York, has approved a request from the US Securities and Exchange Commission outlining the agreement with Tesla and Musk.

A spokesman for Tesla confirmed the settlement but said the automaker would not make any further comment on it.

Under an agreement with the SEC, Musk agreed to pay a $ 20 million fine and to withdraw from Tesla's presidency for three years to settle the charges that could have forced him to leave his post.

The company will also pay a $ 20 million fine, although it is not charged with fraud.

The government's pursuit threatened Tesla and Musk with a long fight that could have undermined his operations and his ability to raise capital.

Under the settlement announced on September 29, Tesla is to appoint an independent chairman, two independent directors and a management committee to oversee Musk's communications.

Musk must comply with the procedures defined by the Committee, including the prior approval of "any such written communication containing, or which may contain, information" to Tesla or its shareholders.

Musk is often Musk's favorite spot for his free communications and his confrontation with Tesla's critics.

The stock plummeted last month after the SEC 's accusation charges, Musk, 47, of fraud on his "fake and misleading" tweets on Aug. 7.

On October 4, just hours after Nathan ordered the SEC to explain why their settlement was fair and reasonable, Musk seemed to make fun of the SEC on Twitter.

"I just want [sic] that the Short Selling Enrichment Commission is doing an incredible job, "wrote Musk, a frequent critic of investors who have bet against the company. "And the name change is so much on the point!"

The day after the tweet, Tesla shares fell 7% when billionaire investor David Einhorn's Greenlight Capital hedge fund criticized the electric car maker, saying Musk had been misleading and his troubles like Lehman's Brothers before his collapse.

Musk has won legions of fans for its bold business and technology approach, using its 23 million followers on Twitter to promote Tesla, its SpaceX rocket company, and the Boring Tunneling Company.

But on August 7, he claimed to have the funds to privatize Tesla. Another U-turn then surprised Wall Street. The latter was surprised by the fact that Musk was filmed briefly smoking marijuana during a live broadcast on the Internet and when he called a British diver in Thailand. cave rescue a pedo.

The Financial Times announced last week that James Murdoch, CEO of Twenty-First Century Fox Inc., son of Fox mogul Rupert Murdoch, was the main candidate to replace Musk as president. Musk called the report "incorrect". Tesla has until November 13 to appoint an independent president.

Thanks to Musk's vision and showmanship, Tesla's valuation has sometimes eclipsed that of the traditional, well-established American automakers, who produce millions of vehicles and billions of dollars in profits every year, and the company has conquered many enthusiasts despite repeated production problems.