Tesla shares are higher in the US Tuesday, as a US judge has approved the settlement between the car maker, CEO Elon Musk and the Securities and Exchange Commission (SEC). The move means investors can draw a line under a tough period for the firm that followed Musk’s use of Twitter to inform of a potential plan of taking business private.
By around 1730 BST, Tesla shares were 4.17% higher at $270.41. After sinking a few weeks ago, the stock has been flat-to-higher, more recently.
Judge approves Tesla, SEC settlement plan
After investigating Tesla during September for CEO Musk’s use of Twitter, both the company and its flamboyant Chairman were found to have abused rules on investor communications. That led to the SEC imposing a $20 million fine each, on Musk and Tesla.
Musk is also required to step down as Chairman of the electric car innovator, for a period of three years. Musk can and will remain in place as CEO.
The formal approval of the settlement between the three, brings an end to the potential uncertainty for investors in the firm, following Musk’s now infamous tweet that funding was secured to take the company private.
Tesla’s new AI chip
In other news for Tesla Tuesday, a new AI chip for the electric car is set to be available in some six months-time. Musk tweeted that the upgraded chip is set to improve the autopilot performance in its vehicles, by anywhere between 500% and 2000%.
Not only will the new AI chip be installed in all new cars on the production line as soon as its available. For those Tesla owners who purchased the full self-driving package, the new chip will be installed for free.
Other Tesla owners can still have the updated chip installed, however, it will cost $5,000 for the upgrade works.