Connect with us

News

Tesla’s Elon Musk and SEC explains their settlement in joint letter to US judge

Published

on

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.”

Advertisement

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.

Advertisement

SEC v Elon Musk – Joint Sub… by on Scribd

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Elon Musk

‘I don’t understand TSLAQ:’ notable investor backs Tesla, Elon Musk

Published

on

tesla showroom
(Credit: Tesla)

One notable investor that many people will recognize said today on X that he does not understand Tesla shorts, otherwise known as $TSLAQ, and he’s giving some interesting reasons.

Martin Shkreli was long known as “Pharmabro.” For years, he was known as the guy who bought the rights to a drug called Daraprim, hiked the prices, and spent a few years in Federal prison for securities fraud and conspiracy.

Shkreli is now an investor who co-founded several hedge funds, including Elea Capital, MSMB Capital Management, and MSMB Healthcare. He is also known for his frank, blunt, and straightforward responses on X.

His LinkedIn currently shows he is the Co-Founder of DL Software Inc.

One of his most recent posts on X criticized those who choose to short Tesla stock, stating he does not understand their perspective. He gave a list of reasons, which I’ll link here, as they’re not necessarily PG. I’ll list a few:

Advertisement
  • Fundamentals always have and will always matter
  • TSLAQ was beaten by Tesla because it’s “a great company with great management,” and they made a mistake “by betting against Elon.”
  • When Shkreli shorts stocks, he is “shorting FRAUDS and pipe dreams”

After Shkreli continued to question the idea behind shorting Tesla, he continued as he pondered the mentality behind those who choose to bet against the stock:

“I don’t understand ‘TSLAQ.’ Guy is the richest man in the world. He won. It’s over. He’s more successful with his 2nd, 3rd, and 4th largest companies than you will ever be, x100.

You can admit you are wrong, it’s just a feeling which will dissipate with time, trust me.”

Advertisement

According to reports from both Fortune and Business Insider, Tesla short sellers have lost a cumulative $64.5 billion since Tesla’s IPO in 2010.

Elon Musk issues dire warning to Tesla (TSLA) shorts

Shorts did accumulate a temporary profit of $16.2 billion earlier this year.

Continue Reading

News

Tesla will let you bring back this removed Model 3 part for a price

It will cost $595 and is available on Tesla’s website. You will have to have a Model 3 on your Tesla account to purchase the stalk retrofit kit.

Published

on

Credit: Tesla Asia/X

Tesla is now letting Model 3 owners in the United States bring back one part that the company decided to remove after it refreshed the all-electric sedan last year. Of course, you can do it for a price.

With the Model 3 “Highland” refresh that Tesla launched last year, one of the most monumental changes the company made was to ditch the turn signal stalk altogether. Instead, Tesla opted for turn signal buttons, which have been met with mixed reviews.

I drove the new Tesla Model 3, here’s what got better

The change was widely regarded as Tesla preparing for more autonomous driving in its vehicles, especially as its interiors have gotten even more minimalistic.

The lack of a stalk in the new Model 3 was just another move the company made to adjust drivers and passengers to seeing less at the steering wheel column.

Advertisement

However, many drivers did not prefer the use of buttons and wanted the stalk reinstalled. Tesla allowed it in several regions, launching a retrofit kit. It has now made its way to the United States:

It will cost $595 and is available on Tesla’s website. You will have to have a Model 3 on your Tesla account to purchase the stalk retrofit kit.

It is interesting to note that despite Tesla’s strategy to remove the stalk with the new Model 3, which was released in early 2024, the company did not choose to make the same move with the new Model Y.

Advertisement

The new Model Y launched in the United States in early 2025, and Tesla chose to install a stalk in this vehicle.

It seemed as if the turn signal buttons were too much of a polarizing feature, and although the company technically could have given orderers an option, it would not have been the most efficient thing for manufacturing.

Continue Reading

News

Tesla Full Self-Driving v14.1 first impressions: Robotaxi-like features arrive

Tesla Full Self-Driving v14.1 is here, and we got to experience it for ourselves.

Published

on

Tesla rolled out its Full Self-Driving v14.1 yesterday, its first public launch of its most robust and accurate FSD iteration yet. Luckily, I was able to get my hands on it through the Early Access Program.

The major changes in FSD v14.1 were revealed in the release notes, which outline several notable improvements in areas such as driving styles, parking, and overall navigation. Here’s what Tesla outlined fully in its release notes:

  • Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.
  • Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).
  • Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.
  • Added additional Speed Profile to further customize driving style preference.
  • Improved handling for static and dynamic gates.
  • Improved offsetting for road debris (e.g. tires, tree branches, boxes).
  • Improve handling of several scenarios including: unprotected turns, lane changes, vehicle cut-ins, and school busses.
  • Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.
  • Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!

I wanted to try it for myself. My big must-dos were my complaints with v13.2.9, which included parking when arriving at a destination, Navigation when leaving a destination, and definitely a general improvement in the car traveling at an acceptable rate of speed, even when using the “Hurry” driving style.

Here’s what I noticed with the new Full Self-Driving v14.1:

Speed Profiles are More Realistic

I am driving on “Hurry” about 95% of the time when utilizing Full Self-Driving. In past versions, most notably v13.2.9, my Tesla would slowly reach the speed limit, and it would tend to hang out at about 1-2 MPH either above or below it.

My first observation with v14.1 was the vehicle’s tendency to get right up to speed and, since I was still on Hurry, drive slightly above the speed limit. It never got out of line; it traveled at speeds I would typically drive at manually.

Advertisement

I think this is a big improvement on its own, because I felt that I was pressing the accelerator too frequently in past FSD versions. Oftentimes, it just wasn’t going fast enough to justify the “Hurry” label; it felt more conservative and more like a student driver than anything.

Check it out:

This was among my favorite improvements, and it was the first thing I noticed as the car navigated me to the Supercharger, where my next positive is.

Navigating into parking lots, self-parking at Supercharger

One of the changes noted in the Release Notes was the addition of Arrival Options, which allows the car to select the appropriate parking situation. Since I was going to charge, the car had already chosen “Charger” as the parking option.

Pulling into a gas station or convenience store, especially during work days, can be stressful, as they are usually congested and full of foot and vehicle traffic. In past FSD versions, I have noticed the car being slightly “jumpy” and even hesitant to proceed through the lot.

Driving through parking lots was a noticeable improvement. It seems as if the car is much more confident in making its way through, while still being aware and cautious enough to safely navigate to the Supercharger.

Advertisement

It then backed straight into a Supercharger stall, which was recently repaired and is once again active. I was actually upset it chose this specific stall because it had been inactive for a while. However, Tesla got this stall back up and running, the car chose it, and backed into the spot flawlessly:

This was super cool to experience, and I think it is a testament to how hard the Tesla AI team has worked. CEO Elon Musk recently stated that FSD would enable automatic parking at Superchargers, which was really awesome to experience firsthand.

Advertisement

I decided to leave the Supercharger and go to an auto parts store to pick up some interior cleaner and some microfiber towels. I love keeping my Tesla clean!

I also thought it would be a great opportunity to see how it would react to another parking lot, how it would navigate it, and let it choose a parking spot. It did it all flawlessly:

Advertisement

I had zero complaints about everything here. All of it was done really well.

Making a choice after being caught in the middle of an intersection

I arrived at a tight intersection in Dallastown, PA, and what my car did next has catalyzed quite a conversation on X.

It proceeded out into the middle of the intersection as the light was green. It had to yield to oncoming traffic, and while waiting, the light turned yellow, then red.

Most people, including myself, would have turned right and proceeded through the intersection since the car was already past the line. However, FSD chose to back up and wait for the next light cycle, which I felt was also a more than acceptable option:

There are some conflicting perspectives on what it chose to do here. Some said they would have proceeded and would want FSD to also proceed. I can agree with that perspective, but I also think it is not the worst thing in the world to back up. In Pennsylvania, I couldn’t find the exact law that says what is right or wrong. Instead, I did see that a left turn on red is only feasible when you’re going from a One-Way street to another One-Way.

I’m not totally sure what is “correct” here, but I think either option is fine. I have personally done both, and I’ve seen other drivers do both. I was more than fine with the car doing this, and I was honestly impressed that it did.

Navigated a busy grocery store lot, found suitable parking

This is not the busiest my local grocery store gets, but it was still congested enough for me to be impressed.

Advertisement

FSD decided to do one loop in the parking lot before it found a spot that it felt was good enough for me. I was perfectly fine with where it chose to park, and I thought it did a really great job. I was impressed with how stress-free I felt, as I have noted in the past that parking lots are definitely an area where Tesla needs to improve.

I was happy with its performance:

Strange right turn signal as if it saw an emergency vehicle

This was the first bug I noticed with FSD v14.1. While traveling on a local road, it put the right turn signal on and approached the curb as if it was pulling over for an emergency vehicle or as if it was going to park on the street.

It then realized its mistake and proceeded:

I’m not super sure what caused this, but I was a tad bit confused. There were no police cars, ambulances, or anyone with flashing lights to my rear. There was a dump truck on the other side of the road, and I almost felt like the way it navigated “around” that was probably what triggered it.

Navigation is still making strange decisions

I’ve written about navigation and my discontent with some of its decisions. It seems v14.1 didn’t resolve much of anything with navigation, and it did a couple of things wrong.

The first was that it tried to take the illogical and pointless path out of the Supercharger. I wrote about this a few days ago, as FSD tried to take my car the wrong way.

Advertisement

It did it again, but I overrode the decision, and it was all okay:

This is a minor issue, but it is still pretty frustrating. Hopefully, the navigation will learn after performing this adjustment after enough times.

Advertisement

The next navigation issue was more frustrating than the Supercharger one, especially considering it completely ignored the route. The navigation had the vehicle very clearly heading straight, but out of nowhere, the right turn signal went on. I overrode it, but the car still turned right, ignoring the navigation completely:

I ended up taking over here and driving until I could get to a stop sign.

Advertisement

Final Thoughts

I am really impressed with all of the changes Tesla made with FSD v14.1, and while there were a handful of bugs, things were tremendously better than v13.2.9.

Continue Reading

Trending