After a tough last week, Tesla appears to have bounced back in the markets after the settlement of a lawsuit filed against Elon Musk by the Securities and Exchange Commission. While the company saw a decline in stock value over the course of several days last week, a huge jump came Monday with an estimated average 15% rise in the value of shares. The lawsuit came after Musk made tweets alluding to the company going private, and was made in response to this potentially misleading investors.
While many were jumping ship on their shares last week in response to this, and others had done so earlier in the month after other controversies surrounding the CEO, it appears the company may make a quick rebound. This is the biggest jump in the company’s stock since 2014.
There were a few caveats to the settlement that Musk and Tesla reached with the SEC. One of the most intriguing and salient changes is that Musk will now step down as the Chairman of Tesla within 45 days. The company and billionaire will also be levied $20 million dollars in fines.
Some believe this will be a positive catalyst for the company. Two new independent directors will be brought in to the company, and another will be tasked with monitoring the public interactions of Musk.