Tags: elon musk | tesla | stock | buy | shares

Elon Musk to Buy $20 Million in Tesla Stock

closeup of elon musk twitter profile and picture
(Mano Kors/Dreamstime)

Wednesday, 17 October 2018 10:19 AM

Tesla Inc. Chief Executive Officer Elon Musk will purchase company stock worth $20 million in the next open trading session, the electric carmaker said in a filing on Wednesday.

Tesla and Musk have each agreed to pay $20 million under a settlement with the U.S. Securities and Exchange Commission of a fraud lawsuit relating to tweets by Musk in August.

Tesla said the purchase was "separate and apart from the settlement" between Musk.

Tesla and the SEC and did not respond to Reuters requests for more information on the reasons for the purchase.

Shares of the company (TSLA) rose 2 percent in early trading.

The government lawsuit threatened Tesla and Musk with a long fight that could have undermined its operations and ability to raise capital.

However, Musk settled with SEC and agreed to step aside as Tesla's chairman for three years, heading off the threat that he would be forced out of company management completely.

The settlement was approved by a U.S. judge on Tuesday. 

Meanwhile, Tesla has signed an agreement with the Shanghai government for an 860,000 square meter plot of land to build its first overseas Gigafactory, the electric carmaker said in a Chinese social media post on Wednesday.

The land agreement marks a key step toward the firm and Musk making cars locally in China for the fast-growing market, even as tariffs imposed by Beijing on U.S.-made goods have caused it to hike prices of its imported models.

Tesla signed a long-anticipated deal with Shanghai authorities in July to build its first factory outside the United States, which would double the size of its global manufacturing and help lower the pricetag of Tesla cars sold in the world’s largest auto market.

“Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site,” Robin Ren, Tesla’s vice president of worldwide sales, said in a statement.

Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square meters had been sold at auction at a price of 973 million yuan ($140.51 million).

Tesla signed a deal with Shanghai authorities in July to open a plant in the Chinese city with an annual capacity of 500,000 cars.

The factory will help tap China’s rapidly growing market for so-called new-energy vehicles (NEVs), a category comprising electric battery cars and plug-in electric hybrid vehicles, even as China’s wider car market cools.

NEV sales were up 54.8 percent in September and climbed 81.1 percent in the first nine months of this year to 721,000 vehicles, the country’s top automobile industry association said last week.

Beijing, however, is reining in subsidies for the sector, concerned about overcapacity and “blind development,” with many inside the industry expecting a shake-out to hit the wide array of smaller local electric car start-ups.

Tesla, which started hiring for the new Shanghai factory in August, previously said that it would raise capital from Asian debt markets to fund the construction, which will cost around $2 billion.

© 2019 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Companies
Tesla Inc. Chief Executive Officer Elon Musk will purchase company stock worth $20 million in the next open trading session, the electric carmaker said in a filing on Wednesday.
elon musk, tesla, stock, buy, shares
524
2018-19-17
Wednesday, 17 October 2018 10:19 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved