Tesla shares bounce back on SEC deal – The Wall Street Journal
DUBLIN – Tesla investors seem very relieved to hear that CEO Elon Musk will remain at the helm. Tesla is trading back around the $300 mark, reflecting both relief that Musk will stay on and anticipation that Tesla will report a profit for the third quarter. Musk reportedly sent an email to employees stating that Tesla is "very close" to making a profit, which is great news for shareholders, who have waited a long time for the automaker to get into the green. All eyes will be on the company's third quarter numbers, due to be released early next month. Tesla must show improved production numbers – particularly of the Model 3 – and ideally should show it is capable of continuously producing at least 5,000 Model 3s a week (rather than showing short bursts of high production volumes followed by slowdowns). Investors will also be looking for signs that Tesla will need to raise fresh capital. Musk says that the company won't, but rumours of Tesla asking for cash back from suppliers have been swirling. Tesla has some big bills coming due soon – it has a $230 million convertible bond due in November (unless the share price hits $560.64) and a $920 million convertible bond due in March next year (unless the share price hits $359.87). With just over $2 billion cash on hand, it looks little tight. – Felicity Duncan
By Allison Prang
(The Wall Street Journal) Tesla Inc. shares soared Monday after Elon Musk reversed course and settled with U.S. securities regulators over the weekend, a surprising decision that put to rest the threat of his removal from a company inseparable from his name.
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