Tesla stock jumped +15% in early trading hours on Monday, on news of Tesla’s settlement with the Securities and Exchange Commission (SEC) regarding the latter’s allegations against Elon Musk.
Late last week, the SEC alleged Tesla CEO Elon Musk of making "false and misleading statements" to investors through his August tweet which said he had secured funding for taking Tesla private. The SEC was planning to ask a federal judge to prevent Musk from serving as an officer or a director of a public company. But the weekend’s event has led to results potentially less dire than expected for Musk and Tesla: as part of his settlement with the SEC, Musk will give up his position as the chairman, while he can still continue to operate as the CEO of Tesla. Tesla would pay $20 million in fine to settle claims of its inadequate action against Musk's tweet.