Published: Wed, October 17, 2018
Hi-Tech | By Kristin Zimmerman

United States judge approves SEC settlement with Musk

United States judge approves SEC settlement with Musk

The SEC said the charge and fine against Tesla is for failing to require disclosure controls and procedures relating to Musk's tweets.

Until now, Tesla has operated as a niche producer of luxury electric vehicles, with a charismatic, showman CEO who regularly interacts with fans on his Twitter account.

The famous American entrepreneur and inventor Elon Musk after the scandal in the company Tesla chose to issue a special tequila.

Tesla shares rose 4 per cent to US$269.81 in morning trading.

The government lawsuit threatened Tesla and Musk with a long fight that could have undermined its operations and ability to raise capital.

The settlement was approved by a US judge on Tuesday.

Tesla confirmed the settlement by declined to comment further.

The complaint was filed after Musk and Tesla's board abruptly walked away from an agreement with the SEC. This was in response to Mr. Musk's tweet stating his intention of taking the company private due to availability of secured funding.

Tesla remains under pressure to meet Musk's targets of achieving profitability at the firm by the fourth quarter of this financial year, a deadline which is looming as the carmaker prepares to file its third quarter financial results next month. Last week, Musk said the Boring Company would sell interlocking, Lego-style bricksmade from rock and soil displaced by the company's tunnel-digging machines.

The SEC filed charges against Musk on September 27, just hours after reports said Musk had rejected an initial settlement offer from the agency.

"Just want to that the Shortseller Enrichment Commission is doing incredible work", Mr Musk, a frequent critic of investors betting against the company, wrote. "And the name change is so on point!" Shares fell more than 5 percent the following day.

Tesla agreed to pay a separate $20 million penalty, according to the SEC.

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.

Tesla founder Elon Musk has refuted a report that James Murdoch, son of News Corp. owner Rupert Murdoch, may replace him as Tesla Inc. chairman in a short tweet. The deal also calls for a new chairman to be appointed, and the naming of two new independent directors.

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