Elon Musk has “temporarily” stepped down as chairman of Tesla, according to globalnews.ca.
The decision comes as part of his settlement with the U.S. Securities and Exchange Commission, after being charged with securities fraud and deceiving investors.
The SEC settlement –which requires court approval- dictates that Musk gives up as Chairman of Tesla within 45 days, and stays as its CEO, in addition to having both Musk and Tesla pay $20 million in fine, according to CNBC’s Phil LeBeau video which was broadcast earlier today. LeBeau commented in his turn that the sum imposed is “nothing as for Musk”.
Musk is obliged as well not to seek reelection for three years, according to court filings.
The $20 million fine comes in settlement of claims regarding Musk’s tweets, which the company failed to “adequately police”, as per CNN.
A leaked court document informed that Musk accepted the deal “without admitting or denying the allegations of the complaint”.
Musk was charged by the government the last week, with making “false and misleading statements” to investors on his Twitter account, after he said he had secured funding to take the company private.
Investors welcomed in their turn the decision of dismissing Musk as Chairman and keeping him as CEO.
Tesla’s Shares Have Been Going Down Since the Tweet
Bloomberg TV spread a space to talk about the step, and reported that the settlement dictates also that Tesla must appoint “independent chairman”, and add “two new independent directors”.
The financial news TV showed in a video as well, an email of Musk’s it obtained, which disclosed Musk was exaggerating numbers as per the TV’s description.
The video compared the email copy to a chart that showed the track of the company’s shares going down by 30% since August 6 tweet, and showed a statement Stephanie Avakian from SEC made, which read: “the total package of remedies and belief… are specifically designed to address the misconduct at issue by strengthening Tesla’s corporate governance and oversight in order to protect investors”.
On the other hand, the stock surged The stock surged 17% yesterday, which is “more than wiping away Friday’s loss”, market experts read.
It is worth mentioning that Tesla is set to release its third-quarter production numbers, which will make clear whether its level of production it could reach by the end of the second quarter was actual or not, when it produced 5,000 Model 3 cars in a week.
Tesla Inc Stock Analysed – NASDAQ Talks
Tesla Inc (NASDAQ: TSLA) stock surged rapidly for 18% on Monday’s trading session.
The stock turned around -8.90% within one year, from $341 on October 2, 2017 to $310 today, so it gave investors and traders a chance to look at the complete situation of the market. The market capitalization of Tesla Inc. settled at $52.87B whereas its P/B Ratio was 13.52.
With regard to the 1D chart, the stock is a strong buy although the indicators – STOCHRSI (14) and William%R signal that the stock got overbought and the ATR (14) indicator suggests its highly volatile to trade for now. The 100-SMA line is below the 200-SMA line which signals that the path of the least resistance is going downside.
All the above-mentioned parameter suggest the traders might book some profits at this point, and a correction towards $300-$302 might be seen in upcoming days.
Additionally, for the long-term investment, the stock is the best buy as the technicals and fundamentals seem to be outperforming.