Musk to buy $20 million in Tesla stock

Yolanda Curtis
October 17, 2018

He abandoned that effort in a matter of weeks and has agreed to settle a securities fraud lawsuit brought by the US Securities and Exchange Commission. Given his accomplishments with Tesla and SpaceX, and the fact that he's an engineer, Musk could just make every giant robot and Gundam fan's fantasy a reality.

A USA judge has approved the settlement between the Securities and Exchange Commission, Tesla and its Chief Executive Officer Elon Musk.

Under terms of the settlement, tentatively reached on September 29, both Tesla and Musk must pay $20 million to Wall Street's watchdogs for Musk's market-moving tweet in which he claimed to have "funding secured" for the deal.

Tesla remains under pressure to meet Musk's targets of achieving profitability at the firm by the fourth quarter of this financial year, a deadline which is looming as the carmaker prepares to file its third quarter financial results next month. Musk and the SEC had filed a joint letter last Wednesday saying their settlement would be in the best interests of investors.

Tesla's share price has surged 54% since January in anticipation of the Model 3 launch, and Tesla's pricey valuation now exceeds that of traditional rivals like General Motors Co and Ford Motor Co.

The electric-car maker submitted a trademark application on October 8 for Teslaquila, describing the planned product as a distilled agave liquor.

Reaching an agreement with lawmakers and regulators is a positive development for Tesla.

Wall Street analysts surveyed by Bloomberg are expecting an adjusted loss of $US0.11 per share, a significant improvement from the previous quarter, and have an average price target of $US303 - about 13% above where shares are now trading.

The company past year hired AI expert Andrej Karpathy to work alongside former Apple chip designer Pete Bannon and develop a new chip optimized specifically for Tesla's own neural network algorithms.

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