Published: Wed, October 03, 2018
Markets | By Jeffery Armstrong

Tesla sharply ups Model 3 production in third quarter

Tesla sharply ups Model 3 production in third quarter

Although Musk, with the support of his company, claimed that he had done nothing wrong, the two have both stated that they will settle the allegations out of court without admitting or denying the allegations.

Musk allegedly tweeted "considering taking Tesla private at $420". The SEC wanted to oust Musk as CEO as punishment.

The electric vehicle maker is expected to report third-quarter production numbers on Tuesday, following a period of turbulence, including a run-in with securities regulators that culminated in Musk being ousted as Tesla's chairman and hit with a multimillion-dollar fine. Musk will remain as CEO of the firm, which will also pay a penalty of $20 million.

As part of the settlement with the SEC, Tesla will also appoint an independent chairman and two independent directors, responding to calls on Wall Street to relieve the pressure on Musk and provide more balance in the carmaker's management. The SEC alleged that Musk knew the plan was built on a shaky foundation when he proposed it.

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Given said controversies you might have thought Musk would be keen to keep a low profile, especially with him having lost his job over his cavalier remarks.

According to the agreement filed on Saturday, Musk must resign as chair within 45 days. He still retains his role as Tesla CEO, and has a place on the board, but he will no longer be leading the company's board for the next three years.

After falling 14 percent on Friday, the stock rose 17 percent today, leaving the closely watched price at $310.70 at the close.

Musk said August 7 in a company blog post that he was considering taking Tesla private at $420 per share, representing a 20% premium over the stock price following the company's second-quarter earnings release.

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They also hoped the settlement would cap several months of volatility around Tesla's shares driven by a series of tweets and public pronouncements by Mr Musk.

Lawyers say the settlement and size of the fine may give more ammunition to short-sellers pursuing separate cases against Musk for manipulating the company's shares as well as to a probe by the Justice Department.

The company said on Tuesday it missed its production target of 6,000 Model 3s by 700 cars in the final week of September and outlined hurdles it faced due to the worsening of President Donald Trump's trade war with China.

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