Tesla is 'very close' to profitability, Musk says in staff email

Alicia Cross
October 3, 2018

Tesla made its biggest gain in five years Monday after company founder Elon Musk reached a settlement with securities regulators that will allow him to stay on as CEO of the electric vehicle maker. The SEC stated that his plans to make Tesla a private company have misled investors, resulting in Tesla stocks to tumble.

Tesla shareholders, Tesla fans, and Tesla customers all breathed a sigh of relief this week when it announced that founder and CEO Elon Musk had reached a settlement with USA regulators.

Right now, Tesla stock has a Hold analyst consensus rating with only 7 recent Buy ratings.

Tesla Motors accelerated production of its pivotal Model 3 sedan during the summer just as CEO Elon Musk promised, vindicating the electric vehicle maker's leader amid a backdrop of baffling behavior that jeopardized his job.

Musk and Tesla were also fined $20million each.

In a sign of the manufacturing process improving, Musk in an email to employees on Saturday said the company was "very close to achieving profitability". Musk won't be eligible to be re-elected as chairman for three years.

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

Many see the forced changes as being positive for Tesla, partly because the mercurial Musk will now have someone to answer to, and partly because his reduced role may allow the chronically overworked CEO to focus more. The second is a series of class-action lawsuits filed by investors who say they lost money due to the market volatility after Musk's statements.

Elon Musk is confident that Tesla Inc. There remain significant opportunities to grow the addressable market for Model 3 by introducing leasing, standard battery and other lower-priced variants of the auto, and by starting worldwide deliveries.

Tesla has also agreed to appoint two new independent directors to its board, establish a new committee of independent directors and put in place additional controls over Musk's communications.

It's a mystery that's been brewing since July: Various locations around the country-including lots, garages, and industrial sites-each have anywhere from dozens to hundreds of Tesla cars parked there.

Stephanie Avakian and Steve Peikin, co-directors of the SEC's Enforcement Division, led the talks, taking the reins from the staff attorneys who worked the case, according to two people familiar with the matter.

Other reports by Free-Prsite

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