Musk tells Tesla employees to prove 'naysayers' wrong
- Author: Eleanor Harrison Oct 03, 2018,
Oct 03, 2018, 1:42
Tesla jumped in pre-market trading after Elon Musk settled a United States lawsuit over his take-private tweet storm, reassuring investors that the billionaire will keep calling the shots at the electric-car maker he's said is on the verge of profitability.
Last Thursday, the SEC filed securities fraud charges against Tesla CEO Elon Musk causing the stock to lose 14%. The SEC's complaint alleged that Musk had made "false and misleading" statements, with Tesla's share price having risen on the back of Musk's tweet.
'The open board chairperson role creates an opportunity for Tesla to potentially put someone in place that is capable of influencing Musk and helping Tesla reach sustainability, ' said Munster, who is a noted Tesla bull.
Aside from naming a new chairman, Tesla will also have to appoint two new, independent directors to its board as part of the SEC settlement. Musk has pledged that Tesla would record profits and positive free cash flow in the third and fourth quarters this year.
Tesla produced over 5,300 Model 3 cars in the last week of September, falling short of its target of 6,000.
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.
Tesla announced Tuesday that it delivered 55,843 Model 3s between July and September, confirming reports that the company's mass-market electric is the fifth bestselling auto model in the United States.
SEC has also charged Tesla for failing to have the required disclosure control and procedures over Musk's tweets. Musk has told upset customers that "we've gone from production hell to delivery logistics hell", and the CEO has incomprehensibly suggested the solution is for Tesla to build its own auto carriers, despite no evidence of any shortage of vehicle haulage capacity. And he'll also pay a fine of $20 million, as will Tesla.
Its shares rebounded 17 per cent on Monday in the U.S. to rebound to around $US310 a share, returning the company to a $US53 billion plus ($A73 billion) valuation, and no doubt causing rage among its critics and short sellers.
Analysts expect Wall Street will now be able to focus more on production numbers for the Model 3 this week, with the worst case scenario of Musk being ousted off the table.