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Tesla’s Elon Musk and SEC explains their settlement in joint letter to US judge
Elon Musk and the Securities and Exchange Commission have submitted a joint letter explaining their settlement for a lawsuit resulting from the Tesla CEO’s “funding secured” tweet last August. The letter, which was dated October 11, 2018, comes a week after U.S. District Judge Alison Nathan asked Musk and the SEC to justify their settlement before she approves the deal.
The CEO found himself in hot water late last month after the SEC filed a suit over tweets posted in August, when Musk announced that he was considering taking Tesla private at $420 per share, and that he had “funding secured.” Tesla stock plunged as news of the agency’s lawsuit emerged, dropping more than 13% amidst reports that Musk allegedly rejected a settlement prepared by the SEC. Elon Musk would agree to a settlement with the SEC in the weekend that followed.
Under the terms of the settlement, Musk would be required to step down as Chairman of Tesla’s Board of Directors. The company would also appoint two new independent directors to its board. Elon Musk and Tesla Inc. would have to pay a fine of $20 million each as well, which would, in turn, be distributed to harmed investors under a court-approved process. In a statement last Thursday, Judge Nathan asked Musk and the SEC for a joint letter explaining their settlement, noting that the court needs to make a “minimal determination of whether the agreement is appropriate” before things are finalized.
The SEC noted in the joint letter that it considered multiple factors when it was determining the appropriate penalties for Musk and Tesla, from the gravity of Musk’s alleged violations to the CEO’s lack of monetary gain resulting from his “funding secured” tweet.
“In this case, the SEC considered multiple factors in determining appropriate civil penalties. These included the seriousness of the alleged violations, the market impact caused by the alleged conduct, and Defendants’ financial means, but also countervailing factors such as Defendants’ willingness to settle these actions promptly, Defendants’ apparent lack of pecuniary gain, and the limited temporal scope of the conduct.”
The agency further noted that sanctions against Elon Musk and Tesla are designed to benefit investors by putting additional governance measures in the electric car and energy company. Musk’s representatives, for their part, simply noted in the joint letter that the CEO believes a prompt resolution through the settlement is in the best interests of Tesla’s investors.
“Tesla and Mr. Musk believe that a prompt resolution of these actions through settlement is in the best interests of investors and should be approved.”
The submission of Elon Musk and the SEC’s joint letter comes amidst news that one of Tesla’s largest investors has increased its stake in the company. On Wednesday, it was revealed that T. Rowe Price Group Inc., which owned 11.93 million TSLA shares at the end of Q2 2018, increased its stake in the company in Q3. By the end of September, the firm held 17.4 million TSLA shares, making it the company’s second-largest shareholder, second only to Elon Musk. Another institutional investor, Bailey Gifford, which owns 13.2 million TSLA shares, currently stands as Tesla’s third-largest shareholder.
With Tesla’s Q3 earnings report coming in less than four weeks, T. Rowe Price’s increased stake in the electric car maker could prove to be a strategic investment for the financial firm. Tesla, after all, finished the third quarter on a strong note, delivering and producing a record number of vehicles. Less than two days before the end of the quarter, Musk even sent out a message to Tesla’s employees, urging them to work hard as the company is “very close” to profitability. Since October began, Tesla has also been showing signs that its Model 3 production ramp continues to grow stronger. Teases of an eventual international rollout for the electric car, such as an exhibit in the Paris Motor Show, further suggest that Tesla is steadily gaining its foothold in its efforts to roll out its first mass-market vehicle.
Elon Musk and the SEC’s joint letter could be read in full below.
SEC v Elon Musk – Joint Sub… by on Scribd
Elon Musk
SpaceX’s next Starship launch is about to attempt its biggest leap yet
SpaceX targets September 22 for Starship Flight 14, its first attempt to reach real orbit.
SpaceX has set September 22 as the target date for Starship’s 14th test flight, and this one carries a different goal than any of the 13 that came before it. Every previous Starship mission has intentionally flown a suborbital arc, reentering the atmosphere within the same hour it launched. Flight 14 is designed to send the craft into a genuine orbit around Earth for the first time.
The launch window opens at 7:15 a.m. Central time at Starbase in South Texas and runs for 75 minutes, pending regulatory approval, according to SpaceX’s mission description published Tuesday. If the flight goes as planned, Starship will circle the planet roughly six times at an altitude near 275 kilometers over about ten hours before a deorbit burn sends it toward a splashdown in the Pacific Ocean west of Chile, a departure from the Indian Ocean recoveries used on the last several flights.
The mission also marks the first attempt to put a working batch of Starlink V3 satellites into actual service. Flight 13 carried 20 of the new satellites in July, but because that mission never left a suborbital trajectory, the payload reentered along with the ship instead of separating into orbit.
SpaceX tells the FCC that Starship Flight 14 is going to orbit
Each V3 satellite is rated for roughly one terabit per second of downlink capacity, so a successful deployment on Flight 14 would be SpaceX’s largest single jump in network bandwidth since Starlink began flying on Falcon 9.
Flight 13 still did the heavier lifting on the technical side. That July mission flew a deliberately more stressful reentry profile to test Starship’s heat shield, and the ship survived its softest splashdown yet, intact enough for drone inspections shortly after landing. Elon Musk said the flight delivered “all the heat shield data we needed and then some,” a result Teslarati covered in detail when he later said SpaceX had solved the vehicle’s biggest reusability challenge. Flight 14 is where SpaceX starts spending that confidence on an actual orbital insertion rather than another controlled fall back to Earth.
One thing Flight 14 will not attempt is a tower catch of the ship. Musk floated the idea right after Flight 13, but walked the timeline back in August, saying a catch attempt was more likely “in a few months.” The Super Heavy booster will still aim for its own recovery, targeting an offshore landing point in the Gulf of America, the same approach used on recent flights.
September 22 is SpaceX’s own target, not a locked date. Starship’s schedule has slipped before over hardware readiness and FAA sign off, and the company has said as much in its own mission notes. But the plan itself represents the clearest marker yet that Starship is moving from a suborbital test program into something meant to carry paying payloads and, eventually, people.
Elon Musk
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Elon Musk hinted a Tesla-SpaceX merger could be coming, and Wall Street is taking notice.
Elon Musk gave his clearest signal yet that Tesla and SpaceX could eventually combine, telling the All-In Summit in Los Angeles that the two companies’ deepening collaboration makes the question worth asking. Sawyer Merritt first surfaced the highlight on X Tuesday.
Asked directly why Tesla and SpaceX remain separate given how closely they already work together, Musk told hosts at the summit: “Great question there. With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas.” SpaceX President Gwynne Shotwell, who joined Musk on stage, added that SpaceX personnel have already moved into xAI to fill leadership and engineering gaps, saying the businesses are integrating “faster than I thought,” though “not fully integrated yet,”
The comments landed on top of merger speculation that has been building on Wall Street for months. JPMorgan has called a tie-up “strategically coherent on paper,” pointing to overlapping ambitions in AI, robotics, energy, transportation and space. Jefferies went further, estimating Musk could retain roughly 55.3 percent voting control in a deal structured without a premium, a scenario that would still leave room for Tesla shareholders to come out ahead. On Kalshi, traders now put the odds of a merger before 2028 at 66 percent.
Tesla’s stake in SpaceX, still under one percent, traces back to its earlier investment in xAI, which converted to SpaceX equity after SpaceX absorbed the AI company. The two are also jointly building Terafab, a chip facility in Austin meant to serve both Tesla’s AI computing needs and SpaceX’s satellite ambitions. Wedbush analyst Dan Ives has stood by a 2027 merger timeline for months, and Cathie Wood’s ARK Invest recently floated a similar case, an idea Musk pushed back on directly at the time.
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
The timing adds another layer. Tesla has scheduled an October 1 unveiling for its next generation Roadster at a venue near SpaceX’s McGregor, Texas test site, using the phrase “Go for launch” in its promotional material. Both stocks dipped roughly 2 percent Monday before recovering slightly in premarket trading Tuesday, with SpaceX shares up about 0.4 percent and Tesla essentially flat.
Musk stopped short of confirming anything is in motion. But unlike his past denials of a corporate restructuring, this response didn’t rule one out, and it came with Shotwell sitting next to him describing an integration that’s already underway.
Elon Musk
Tesla Roadster unveiling is getting hyped up by Elon Musk
The Tesla Roadster unveiling is getting hyped up by the company’s CEO Elon Musk, who has been a big reason the product has such high expectations due to delayed timelines and a constant need to make it even more insane than before.
Tesla announced on September 12 that it would officially unveil the Roadster in Waco, Texas, on October 1, ending years of patience for fans and reservation holders who have waited for the all-electric supercar to enter production since 2017.
Musk has said that this event will be well worth the wait on several occasions, and last year on the Joe Rogan Experience, he said that there should be a closing chapter to supercars- the end of cars that aren’t focused on safety.
He said:
“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one. I think it has a shot at being the most memorable product unveil ever. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”
Musk’s teases have continued, and now that the event is roughly two weeks away, it seems like Roadster is finally going to show up and blow some minds:
It’s out of this world
— Elon Musk (@elonmusk) September 13, 2026
Excitement guaranteed
— Elon Musk (@elonmusk) September 13, 2026
Tesla has definitely dragged out the development of the Roadster, but there is a good reason for it.
Tesla has been working on many other projects, most notably self-driving efforts to increase passenger safety, and those simply took priority over the Roadster, a low-volume, high-performance sports car that has a lightning-fast acceleration rate of 0-60 MPH in just 1.1 seconds, could potentially fly, and contributes very little to the company’s mission.
However, many people have the Roadster on pre-order through the referral program or with their own money, and it is time that Tesla delivers on that.