It looks like Tesla (TSLA) is already erasing the loss in value from its sharp drop in stock price following the SEC’s lawsuit last week.
The automaker’s stock has rebounded by 16% in pre-market trading following the news of Elon Musk’s SEC settlement and anticipation of the quarter’s numbers.
On the news that Musk was being sued by the SEC, the stock dropped 14% on Friday.
This weekend, the SEC announced that they settled the case with Musk, who agreed to a deal that allows him to remain CEO of Tesla, but he has to resign from the role of chairman of the board, pay a $20 million fine, and a few other things. You can read our full report on the settlement for all the details.
As the pre-market opened this morning, investors seem to like the deal since the stock surged 16% on high volume.
That said, the surge also happens as Tesla is expected to release its production and delivery numbers for the third quarter and anticipation of high numbers could be contributing to the surge.
We have been tracking Tesla’s production for the quarter and we have seen new production records and the automaker finishing the quarter strong last week despite the noise about the SEC.
In an email to employees on Saturday, Musk wrote that Tesla is ‘very close to achieving profitability’:
“We are very close to achieving profitability and proving the naysayers wrong, but, to be certain, we must execute really well tomorrow (Sunday). If we go all out tomorrow, we will achieve an epic victory beyond all expectations.”
It looks like the market is already celebrating that potential victory.
Tesla has to release the numbers within 4 days after the end of the quarter, but the automaker has regularly released them the next day (Today) over the last few quarters.
We will keep a close eye and report back as soon as we know more. Stay tuned.
Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.