Tesla Shares Jump; Elon Musk Says Company Close To Achieving Profit

CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne California

CEO Elon Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne California

Musk and Tesla each agreed to pay a $20 million fine. One tweeted to Musk last month: "There are 42 Tesla's sitting at the Union Pacific Railroad in SLC".

A 2018 Tesla Model 3 electric vehicle is shown in this photo illustration taken in Cardiff, California, U.S., June 1, 2018.

Some highlights: The company said it delivered more than 55,000 Model 3 sedans during the quarter, a 10th of those in the last week of the quarter.

The move brings a conclusion to the SEC fraud charges over his infamous "funding secured" tweet.

In a statement to CNBC, Musk called the allegations "unjustified".

Under a settlement announced Saturday, Musk will give up his post as Tesla's chairman for at least three years. "We are very close to achieving profitability and proving the naysayers wrong, but to be certain, we must execute really well tomorrow (Sunday)".

Various news reports in August and September claimed that the Tesla Model 3 has become the fifth best-selling auto model in the United States, after the Toyota Camry and Corolla and the Honda Civic and Accord.

Besides a new chairman, Tesla was also ordered to appoint two new, independent members to its board.

By allowing Musk to stay on as CEO under the settlement, the SEC has avoided the possibility that removing Musk from Tesla could cause investors to lose faith in the company's ability to thrive without him, potentially leading to more instability in its share price and value.

Tesla, which has repeatedly fallen short of its own manufacturing targets, probably will finish the quarter making 53 457 Model 3s, according to the Bloomberg Tracker, an experimental tool to monitor the rollout by using vehicle identification numbers to estimate production in real time.

The SEC claimed Musk had mislead investors when he tweeted he secured funding to take Tesla private.

Tesla in recent years has become one of the most valuable American vehicle maker, with its stock worth more than $50 billion.

In order to avoid similar inconvenience in the future, the company will also hire a lawyer that will not only monitor the communication of Musk but also oversee his tweets. The SEC also filed papers that charged Tesla with failing to exercise proper oversight over Musk's actions and laid out a separate settlement of those charges.

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