Shares of the company rose 2 percent in premarket trading.
A United States judge today approved the settlement between the Securities and Exchange Commission, Tesla Inc and its Chief Executive Officer Elon Musk. In addition, Musk must also step down as chairman of Tesla, although he will remain the company's CEO. Company founder Tesla and the Commission on securities and exchange Commission (SEC) entered into a pretrial agreement against inventor fraud charges.
Despite what appears to be Musk's irritation in light of the case, the deal has now been agreed and will be followed through.
Musk's last tweet for that day truly solidified his love for anime culture when he said it was "time to create a mecha", or a giant fighting anime robot.
According to trademark application, an earlier document was filed in Jamaica on 10 April this year. Additionally, he will be required to relinquish his role as Tesla chairman for at least three years within 45 days. Tesla has until November 13 to appoint an independent chairman.
The ruling allows Tesla to put this distraction behind it and get back to building cars.
CEO Elon Musk and a US federal judge finalized an agreement Tuesday morning to settle allegations of fraud.
Bloomberg reports that weekly production of the Model 3 has been on the rise and is averaging around 4,258.
"Am considering taking Tesla private at $420". Tesla is banking on the Model 3 to turn a profit.
Musk is Tesla's biggest shareholder by far. "The total package of remedies and relief announced today are specifically created to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors", had said, at the time, Stephanie Avakian, Co-Director of the SEC's Enforcement Division.