Published: Wed, October 17, 2018
IT | By Darin Griffith

Judge approves Elon Musk's settlement with SEC

Judge approves Elon Musk's settlement with SEC

Billionaire Elon Musk has admitted that he loves the genre of anime.

Tesla shares soared more than 5 percent in early trades to $273.88 on the news.

He agreed to step down as chairman of the company, and he and Tesla must now pay $20m in fines within 14 days. A federal judge is approving a settlement between Musk and federal regulators over his infamous tweet about taking Tesla private.

Mr Musk took to the stage driving a red Model 3, and said Tesla has produced 50 of the vehicles so far, including 20 for testing purposes.

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The SEC probe was triggered by Musk's tweet on 7 August that he had "funding secured" to take Tesla private. Musk tweeted on October 4. Musk also issued the same pledge to all countries that Tesla will be operating in by the end of next year.

On Oct. 4, just hours after Nathan ordered him and the SEC to explain why their settlement was fair and reasonable, Musk appeared to mock the SEC on Twitter.

"Just want to [say] that the Shortseller Enrichment Commission is doing incredible work".

While there's little else in the way of official information about the Tesla-themed tequila, CNBC points out that the company filed an "intent to use" trademark for the name, which means they have "good faith intention" of using it in the future.

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In its lawsuit, the SEC said Musk calculated the 420/share based on a 20%premium over that day's closing share price and because of the 420 number's slang reference to marijuana.

Musk, now Tesla's CEO, tweeted on Friday that a new branded tequila was in the works and has posted a placeholder label mockup for a Teslaquila bottle.

The Financial Times reported last week that outgoing Twenty-First Century Fox Inc CEO James Murdoch, a son of Fox mogul Rupert Murdoch, was the lead candidate to replace Musk as chairman. The plan also calls for the naming of two new independent directors.

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