Tesla shares rocketed by 16 per cent on Monday morning in Wall Street's first chance to react to the dramatic and turbulent events of the weekend which led to Elon Musk's resignation as chairman.
Share prices opened at $308, 41 points higher than Friday's close when the future of the company, and Musk's leadership of it, remained uncertain in the face of an SEC lawsuit alleging fraudulent and misleading behavior.
It recovers the $7billion loss the company suffered when the SEC sued Musk on September 28th.
Musk had been negotiating with the commission to settle its case against him for tweeting on August 7 that he planned to take the company private for $420 a share, an apparent reference to the April 20th celebration of marijuana that Musk allegedly made public to entertain his rapper girlfriend Grimes.
He had agreed, it was claimed by insiders, to a $419 per share buyout with the Saudi sovereign wealth fund and prematurely made it public to quieten naysayers who had been shorting the company's stock in light of delays in production of its Model 3 sedan.
On Monday, sources told Electrek that the company had hit its Q3 production targets for the cars which bolstered the already climbing stock price. It has produced 51,000 models - 1,000 more than its minimum.
Musk, who is worth $25billion, insisted that a real deal was on the table and that he was merely trying to be transparent when he shared the details on Twitter.
Tesla shares opened at $308.00 on Monday, an increase of 16.33 per cent which recovered its $7billion losses suffered on Thursday
On Thursday, a deal was on the table but Musk backed out at the last minute and the SEC responded by suing him which sent share prices tumbling.
On Saturday, Musk settled unexpectedly, agreeing to pay a $20million fine and promising to step down as chairman for three years.
As part of the deal, Tesla must also pay a $20million fine for not controlling him and his tweets.
On Monday morning, as stocks recovered from the scandal, he returned to social media with a bizarre tweet.
Musk, pictured on September 17, will remain Tesla's CEO but must step down as chairman for three years and pay a $20million fine
It read: 'Naughty by nature', followed by a winking emoji and a link to the hip hop band Naughty by Nature's 1991 song OPP which stands for other people's property.
Over the weekend, he avoided any talk of the deal or SEC deal and responded to user complaints about the wait time for Tesla products.
Last week, after walking away from the deal, he called the suit 'unjustified'.
'This unjustified action by the SEC leaves me deeply saddened and disappointed.
'I have always taken action in the best interests of truth, transparency and investors.
'Integrity is the most important value in my life and the facts will show I never compromised this in any way,' he said in a statement.
In its complaint, the SEC said: 'Musk’s statements, disseminated via Twitter, falsely indicated that, should he so choose, it was virtually certain that he could take Tesla private at a purchase price that reflected a substantial premium over Tesla stock’s then-current share price, that funding for this multi-billion dollar transaction had been secured, and that the only contingency was a shareholder vote.
'In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source.'
Saturday's settlement brings an end to the months-long issue which has placed Musk's personal life under increased scrutiny.
It included speculation that the tweet was a joking reference to marijuana and was intended to impress his rapper girlfriend Grimes.
The SEC said in its filing he had recently learned of the link between 420 and marijuana and rounded up the estimated private buyout share price of $419 because she would find it 'funny'.
The business mogul celebrated putting his woes with the SEC to bed in the early hours of the morning with this bizarre tweet which included a link to the song OPP which stands for Other People's Property
Musk sparked the SEC investigation on August 7 by tweeting that he was taking Tesla private at $420 a share. The SEC found that it was a 'false and misleading' tweet
The tweet was an apparent attempt by Musk to make his rapper girlfriend Grimes (seen together at the Met Ball in May) laugh because of its reference to marijuana
TIMELINE OF TESLA'S CRISIS: MUSK'S ERRATIC AND EXPENSIVE BEHAVIOR
February 2018: Tesla reports its biggest quarterly loss - more than $500million. Stocks dive by 8 per cent
March 23, 2018: A fatal Model X crash which involved its autopilot mode spark safety fears and send stocks tumbling
April 1: Musk jokes about Tesla going bankrupt on Twitter
Rapper Azealia Banks who claimed Musk wrote the tweet while high on acid
May 2: Musk holds an earnings conference call where he calls analysts' questions 'boring and boneheaded'
May 3: Musk expands his stake in Tesla to 20 per cent, acquiring $9.85million in shares
June 12: Musk announces 'difficult but necessary reorganization' which will see nine percent of its workforce let go
July 15: After offering up a team of engineers to rescue a group of Thai boys who became stuck in a cave, Musk launches an astonishing attack on a local diver who tried to save them. He calls the man a 'pedo' in retaliation for his criticism of Tesla's failure to get to the children and save them
July 30: Rapper Azealia Banks announces she is collaborating with Musk's girlfriend Grimes
August 7: Musk tweets that he is taking Tesla private for $420-a-share. It leads to an increase in stock price which saw his individual net worth rise by $1.4billion that day
August 8: The Wall Street Journal reports the SEC has opened an inquiry into the tweet
August 10: Azealia Banks goes to Musk's house to collaborate with Grimes
August 13: Banks takes to Instagram, angry that she apparently had to 'wait around for Grimes to coddle her boyfriend' when they were due to make music. She alleges that Musk spent the weekend 'scrounging' for investors after the tweet which she said he posted while high on acid.
She later claims outrageously that Musk, 47, and Grimes only invited her to his home to take part in a threesome.
On September 7, Tesla shares hit a six month low after Musk smoked cannabis during a podcast
Musk denies ever having her at his home and says in a Tesla announcement that he had secured funding from the Saudi Arabian Sovereign Fund with whom he had a verbal agreement
August 16: Musk admits in a New York Times article that Banks was at his house. Elsewhere in the article, he complains about the 'excruciating toll' of Tesla. Stocks react unfavorably
August 19: Banks sends Musk a letter saying she feels 'terrible' about everything
August 21: Musk shuts down his Instagram account
August 24: He vows to keep Tesla public and says he will remain at the helm
September 7: Musk drinks and smokes marijuana during a podcast. Shares tank by 11 per cent and Chief Accounting Executive Dave Morton's resignation is announced. On the same day, the HR chief and head of communications also leave
September 27: Musk is sued by the SEC after walking away from a deal which would see him pay $10million in fines, step down as chairman. Shares plummet by 14 per cent
September 29: Musk settles with the SEC
The figure 420 is synonymous with the drug because of April 20th, a day selected by cannabis smokers to celebrate the habit all over the country.
Musk himself came under fire for smoking marijuana during an unhinged radio interview on September 7 which sent shares plummeting to $263.24, a six month low.
It also coincided with the departure of Chief Accounting Officer Dave Morton who quit days earlier, complaining in an SEC filing that he was not being listened to by the board or Musk.
A confusing, rumor-fueled feud with rapper Azealia Banks also brought into question his leadership abilities.
On Friday, with the company's future uncertain after Musk walked away from a deal, shares had plunged 13.9 percent to close at $264.77 a share.
The SEC offered him a similar deal to the one he accepted on Saturday earlier in the week but he walked away from it because, it was claimed by sources close to the matter, it would have restricted him from stating publicly that he did nothing wrong.
It was cheaper - fining him $10million and requiring that he step down as chairman for two years.
Under the settlement announced Saturday, Musk is giving up the chairman's role for three years but gets to remain as CEO. The complaint had sought his removal as chief executive as well.
The deal will also put two new, independent members on the board.
Legal experts and many investors believe that could provide more oversight, an important move for a company of Tesla's size.
hienalouca.com
https://hienalouca.com/2018/10/01/tesla-shares-up-by-15-per-cent-after-elon-musks-resignation/
Main photo article Tesla shares rocketed by 16 per cent on Monday morning in Wall Street’s first chance to react to the dramatic and turbulent events of the weekend which led to Elon Musk’s resignation as chairman.
Share prices opened at $308, 41 points higher than Friday’s close when the future ...
It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.
Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.
Dianne Reeves Online news HienaLouca
https://i.dailymail.co.uk/1/2018/10/01/14/4669948-6226685-image-a-2_1538402285008.jpg
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