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

A Tesla logo is seen in Los Angeles California

With its meteoric rsie, Tesla has practically recovered the losses it incurred last week after the SEC announced that it was filing a lawsuit against Elon Musk over his "funding secured" Twitter announcement last August.

Billionaire businessman Elon Musk has stepped down as the Chairman of Tesla following a tweet where he claimed he has the funding and investor support to buy the publicly-traded company. The tweets had no basis in fact, and the ensuring market chaos hurt investors, the SEC said.

That's all on top of Tesla's hard-to-watch 2-year struggle to meet production goals on their new Model 3 (though, they did meet their Q3 goal).

The deal eases uncertainty over Tesla's future while removing Musk from a key role at the automaker he's led to become one of the most valuable in the world.

As a result of these publications, Tesla shares rose 11% on the stock exchange, prompting the U.S. regulator to investigate the case.

"A $20 million fine is very small, (.) allows him to stay there and also introduces some healthy governance measures".

Tesla, which has repeatedly fallen short of its own manufacturing targets, probably will finish the quarter making 53 457 Model 3s, according to the Bloomberg Tracker, an experimental tool to monitor the rollout by using vehicle identification numbers to estimate production in real time. As part of the settlement, both the company and Musk have been fined US$ 20 million each. Amidst reports that Musk reportedly rejected a settlement from the government agency, Friday's trading ultimately ended at $264.77 per share.

The settlement with the SEC won't be the end of the matter, though, as Musk is also facing a series of class action lawsuits relating to the tweets.

Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticised Tesla's board for being too beholden to Mr. Musk.

Musk's settlement with the SEC requires him to give up his position as chairman of Tesla's board for three years.

A tweet can be worth a thousand words, or in Elon Musk's case, millions of dollars.

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