Elon Musk’s SEC settlement has cleared a path for Tesla’s record-breaking Q3 results



For Tesla, the previous 3 months have been filled with unbelievable landmarks and daunting challenges. Since generating 5,000 Model 3 per week at the end of Q2, the electric car maker has steadily pushed itself from “manufacturing hell” and well into Elon Musk’s self-dubbed “delivery logistics hell. ” As the final hours of the quarter trickle down, Tesla is on full throttle since it attempts to finish Q3 2018.

It has not been easy for Tesla, and especially its CEO, Elon Musk. It is not tricky to see that Musk’s status for a rockstar CEO has served Tesla well, but some of Musk’s mistakes. Earlier this month, as an example, Tesla inventory chose a steep fall after news of 2 executive departures were augmented by Musk’s activities through a podcast, that included an example when he smoked cannabis. 

Perhaps Musk’s notable gaffe, however, was a post August stating that he was contemplating taking Tesla private at $420 a share, which he had “funding. ” The Securities and Exchange Commission (SEC) finally filed a lawsuit against Musk over his “funding procured ” tweet, asserting the CEO knowingly misled investors. Musk settled with the SEC this weekend, also agreeing to cover a full penalty of $40 million, comprised of a $20 million private fine and another $20 million good for Tesla. Part of this settlement also contained Musk’s resignation as the Chairman of both Tesla’s Board of Directors, the appointment of two new independent directors, in addition to the inception of a new committee tasked to “put additional controls and procedures to oversee Musk’s communications,” especially on social networking platforms such as Twitter.

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While it is unfortunate that Elon Musk should relinquish his post as Chairman of Tesla’s Board of Directors, his settlement with the SEC could be viewed as Musk’s choice to take a private blow rather than undermining Tesla’so advancement. Elon Musk, after all, allegedly rejected the SEC’s settlement, and by Friday, it looked like he prepared to fight it out with the government bureau. This was one of the reasons why the SEC’s announcement on Saturday approximately Elon Musk’s resolution came as a welcome surprise to the Tesla community.

Finally, Elon Musk appears to have put Tesla until his fantasies to fight against the SEC. Enjoy he was cornered by the government agency and it wasn ’ t. Former SEC senior adviser Thomas Gorman, who’s also a partner at the law firm Dorsey & Whitney, said that the agency miscalculated if it filed a lawsuit against Musk. Gorman noticed that although Elon Musk’s “funding procured ” tweet last August wasn’t smart from a business standpoint, the SEC would have a very hard time demonstrating that the CEO actually committed fraud. Gorman further noticed that the Saudi fund’s reported interest in Tesla’s take-private deal would likely be sufficient to create Musk’s statements legal.

“There’therefore a fair foundation for what he explained. I’theres not questioning their rationale. I disagree with their ruling here,” Gorman said.

Finally, Elon Musk’s SEC settlement has provided a route for Tesla to reach a quarter without any unnecessary play. Elon Musk himself has noticed that Tesla’s main challenge today is bringing as numerous vehicles to reserve holders as speedily as possible. Tesla, for its part, has begun adapting to the shipping challenges. Handovers allegedly go well into the night, house deliveries are being done to several reserve holders, as well as owners of Tesla vehicles that will willingly volunteer their time have been tapped to assist the company in its end-of-quarter push. Tesla’s production and delivery figures this Q3 would likely set new records, and with Elon Musk’s SEC lawsuit in the rearview mirror, so there’s very little that could come between the electric car maker and more impressive landmarks.

The post Elon Musk’s SEC payoff has cleared a route for Tesla’s record-breaking Q3 results appeared first on TESLARATI.com.

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