Tesla’s stock rebounded Monday morning following weekend news that CEO Elon Musk had reached a settlement with the Securities and Exchange Commission (SEC) over charges of fraud stemming from a series of unusual tweets he sent in August.
Tesla’s shares jumped 17 percent after the opening bell. Friday’s shares were down 15 percent after Thursday afternoon’s announcement from the SEC that it was suing Musk, seeking his permanent removal from Tesla and a lifetime ban on serving as an executive at a publicly traded company.
The lawsuit centered on Musk musing on Twitter about taking the company private, saying he had “secured” funding.
{mosads}The SEC’s move apparently prompted Musk to come to the table with regulators. Under the agreement announced Saturday, the billionaire entrepreneur will have to step down as chairman, but he’ll retain a seat on the board and remain CEO. Tesla and Musk, whose net worth is estimated around $20 billion, will also each have to pay a $20 million fine.
Investors seemed to take heart in the relatively light penalty. Shares of Tesla, which is headquartered in Palo Alto, Calif., peaked at $311 Monday morning before leveling off midday at about $304.
Musk also appeared emboldened. Shortly before 1:30 a.m. Pacific Time, he tweeted “Naughty by Nature” with a winking emoji and a link to a music video by the rap group.