March 8, 2021

Tesla shares soar on the stock exchange following Musk's agreement with the SEC

Tesla shares soar on the stock exchange following Musk's agreement with the SEC


ABC

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Tesla shares have soared on Wall Street today, marking increases of 15%, after the agreement reached by the founder of the company, Elon Musk, with the National Commission of Markets and Values ​​of the United States. (SEC, for its acronym in English). Musk, who left the presidency last Saturday after to be accused of fraud, will continue as CEO of Tesla, while he will pay a fine of 20 million dollars.

With today's gains, Tesla recovers the losses recorded on Friday, of 14%, a day after the SEC confirmed the lawsuit against the founder of the car company. Specifically, he accused Musk of manipulating the market, after this summer he used the social network Twitter to announce that he was willing to launch a possible Opa on Tesla, something that later did not happen. Since then, the company's shares have experienced a continuous roller coaster, being very volatile.

So, after Musk's Saturday agreement with the SEC, in addition to relegating Musk from the presidency, but not being CEO, and the obligation to pay the fine of 20 million, Tesla must also pay that amount as a fine. Both penalties will be shared among the shareholders.

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

Now, with the calmer waters, investors expect the volatility of Tesla shares to cease sooner rather than later. Analyst Jed Dorsheimer of Canaccord Genuity has expressed that "we see the agreement of Elon Musk and Tesla with the SEC as a positive change, as it should improve corporate governance and reduce the focus of investors directly on operations »

At the same time, it is expected that this week Tesla will present the quarterly results of the production of the Tesla Model 3, considered by analysts as crucial for the automaker's drive to achieve long-term profitability.

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