Tesla stock roars back after Elon's SEC deal

A Tesla charging station

The SEC's complaint alleged that Musk had made "false and misleading" statements, with Tesla's share price having risen on the back of Musk's tweet.

The charges come after Musk claimed in August via a series of tweets that he was planning to take the electric vehicle maker private, and implied that such a move was imminent with "funding secured".

In a statement, the SEC added that the settlements are subject to court approval and that they would also require comprehensive corporate governance and other reforms at Tesla.

The company has recently been struggling to meet audacious production goals for its Model 3 sedan. The company's losses exceeded more than $1 billion in recent quarters. "If we go all out tomorrow, we will achieve an epic victory beyond all expectations".

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

In Coral Gables, Florida, a showroom attendant who asked not to be named said deliveries were scheduled hour-by-hour to avoid congestion. Tesla was hit with a $20 million fine of their own.

"This weekend is the pivot point", he said, describing it as a watershed moment not just for the company but for the shift away from the internal combustion engine. That's above the Wall Street consensus of 50,416 - the average estimate of five analysts polled by Bloomberg - and toward the high end of Musk's July forecast of between 50,000 to 55,000 Model 3s.

Analysts from Cowen wrote in a note over the weekend that while the settlement would likely lead to a near-term bump for Tesla shares, it could leave Musk open to future litigation - including class-action lawsuits that have already been filed.

According to analysts, the settlement is probably the best thing for both the SEC and Musk and Tesla, because the SEC is showing it can act to enforce change in protecting shareholders, while Musk-removed as chairman-will keep its CEO role at Tesla: a role analysts and Tesla believers see as crucial for the company.

"The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", SEC co-director of enforcement Steven Peikin said. Likewise, Tesla will pay another $20 million due to its failure to check whether Musk's announcements complied with the law.

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