Tesla shares jump on Model 3 numbers, Musk settlement

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

Elon Musk to Resign as Chair of Tesla Board but Remain CEO

Tesla CEO Elon Musk reaches a settlement with the Securities and Exchange Commission after the agency filed a lawsuit against him; Facebook accounts of 50 million people have been compromised by hackers.

Under terms of the agreement, Musk also must give up his seat as chairman of the board of directors for at least three years.

Shares of Tesla jumped almost 16% today after chief executive Elon Musk settled with the US Securities and Exchange Commission (SEC) over charges of misleading investors, heading off moves to force him out.

The charges come after Musk claimed in August via a series of tweets that he was planning to take the electric auto maker private, and implied that such a move was imminent with "funding secured". The SEC eventually sued Musk for securities fraud on Thursday.

As part of the settlement, Tesla will appoint an independent chairman, two independent directors, and a board committee to set controls over Mr Musk's communications under the proposed agreement.

Loup Ventures Managing Partner Gene Munster noted that the SEC settlement is the best outcome possible from Elon Musk's "funding secured" fiasco.

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Last week, the government charged Musk with making "false and misleading statements" to investors on his Twitter account when he said he had secured funding to take the company private. Under the settlements, which are contingent on court approvals, Musk will step down as Tesla chairman and will be replaced by an independent chairman.

Tesla jumped in pre-market trading after Elon Musk settled a U.S. 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.

"The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", Peikin added.

He accepted the deal "without admitting or denying the allegations of the complaint", according to a court document. Tesla shares plummeted 14% on Friday, the biggest drop in nearly five years.

The settlement with the SEC won't be the end of the matter, though, as Musk is also facing a series of class action lawsuits relating to the tweets.

Musk, a co-founder of Tesla, is the company's largest stockholder, owning approximately 22 per cent of its outstanding shares.

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