Elon Musk stepping down as Tesla chairman

After Elon Musk tweeted about taking Tesla private, the Securities and Exchange Commission sued him for "false and misleading" statements to investors. Now he's stepping down as chairman and paying a $20 million fine.

Posted: Oct 1, 2018 12:39 PM
Updated: Oct 1, 2018 12:53 PM

The stock market appears to like the new trade agreement between the United States, Canada and Mexico.

Stocks popped after all three countries agreed to an 11th hour deal to replace NAFTA.

The Dow rose nearly 250 points, a gain of almost 1%. The S&P 500 and Nasdaq were also sporting solid gains in early trading.

The reworked trade deal, announced late Sunday night, was reached after Canada agreed to give US dairy farmers greater access to the Canadian market.

The United States also agreed to make concessions on some automobile tariffs for cars and trucks built in Canada and Mexico as part of the agreement, which replaces NAFTA and will be called the United States-Mexico-Canada Agreement (USMCA).

Shares in major automakers rose on the news, including GM and Ford which were both up nearly 2% in early morning trading. Fiat Chrysler rose more than 3%.

Still, some market experts said investors may be overreacting to the USMCA deal. That's because the United States still faces another major trade battle.

"While the U.S. has reached a new trade agreement with Mexico and Canada, growing trade conflict between China and the U.S. threatens economic growth in both countries," said David Kelly, chief global strategist with JPMorgan Funds, in a report Monday.

Eric Winograd, senior economist with AB, also thinks that China-US tension will not be resolved this easily.

"The US relationship with China is much more complicated than its relationship with Canada. And of course the stakes are considerably higher when dealing with China—the Chinese have leverage over the US that Canada simply doesn't have," Winograd wrote, referring to China's ownership of US Treasury debt as well as the fact that it's a much bigger market for US exports.

"I certainly wouldn't rule out an agreement being reached with China, but I don't think that the US-Mexico-Canada Agreement provides a template that can be used in discussions with the Chinese," Winograd added.

Others think that a US-China deal is inevitable, which makes the market's reaction to the USMCA agreement, a logical one.

"Many investors are betting there's room for a market friendly compromise after the US midterm elections in early November when the Chinese will have an incentive to deal to avoid the 25% tariff rate that kicks in on $200 billion in Chinese exports on January 1, 2019," wrote Alec Young, managing director of global markets research for FTSE Russell, in a report.

Other market movers

It's not just the trade deal helping move the markets.

The surprise ouster of General Electric CEO John Flannery and a deal between Tesla and the SEC are also having a big effect.

Shares of GE soared nearly 14% following the news that Flannery, who had only been CEO since August 2017, is being replaced by Larry Culp, a former head of industrial conglomerate Danaher.

Culp, who joined GE's board in April, faces a difficult task in getting GE back on track. GE also announced Monday that it was taking a charge tied to its struggling GE Power unit. The stock had fallen 35% so far this year prior to Monday's surge.

GE's market value slipped below $100 billion last week for the first time in more than nine years. And the company was removed from the Dow Jones Industrial Average in June after a more than 100-year stay in the iconic market barometer.

Tesla was also set to rally Monday after the electric car maker reached a settlement with the Securities and Exchange Commission that will require Elon Musk to step down as chairman but allow him to stay on as CEO.

Shares of Tesla were up 16% in early trading. The stock plunged 14% Friday on the news that the SEC had filed a lawsuit accusing Musk of making "false and misleading statements" earlier this summer when he tweeted that he had "funding secured" for a deal to take Tesla private.

As part of Tesla's deal with the SEC, Musk did not admit to any wrongdoing. The company is also paying a $20 million fine.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 751826

Reported Deaths: 13811
CountyCasesDeaths
Marion1033581790
Lake557861011
Allen41721692
St. Joseph37001565
Hamilton36612417
Elkhart29416461
Tippecanoe22926227
Vanderburgh22559400
Porter19364326
Johnson18481389
Hendricks17692317
Clark13231195
Madison13166344
Vigo12629253
LaPorte12425221
Monroe12219176
Delaware10969198
Howard10343225
Kosciusko9636121
Hancock8578147
Bartholomew8172157
Warrick7862156
Floyd7814180
Grant7246179
Wayne7165201
Boone6976103
Morgan6764141
Dubois6222118
Marshall6211116
Cass6023110
Henry5903110
Dearborn589878
Noble581688
Jackson509476
Shelby502296
Lawrence4749122
Gibson445395
Clinton443255
Harrison441775
DeKalb440085
Montgomery438890
Whitley406643
Huntington403181
Steuben400559
Miami395669
Jasper388855
Knox377491
Putnam373461
Wabash362383
Ripley347370
Adams345555
Jefferson336186
White332453
Daviess3033100
Wells295381
Decatur289892
Greene286885
Fayette284864
Posey273835
LaGrange273172
Scott270156
Clay267148
Washington246236
Randolph245183
Jennings235349
Spencer234631
Starke228058
Fountain221448
Sullivan214643
Owen212258
Fulton203443
Jay201032
Carroll193820
Orange188255
Perry187237
Rush175926
Vermillion175144
Franklin170435
Tipton166646
Parke149616
Pike138334
Blackford136232
Pulaski120748
Newton114436
Brown104443
Benton102514
Crawford102516
Martin91815
Warren84015
Switzerland8158
Union72810
Ohio57911
Unassigned0424

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1109374

Reported Deaths: 20213
CountyCasesDeaths
Franklin1288561469
Cuyahoga1158492216
Hamilton814161251
Montgomery525741049
Summit484431006
Lucas43380824
Butler39066606
Stark33348930
Lorain25690506
Warren24607305
Mahoning22383602
Lake21216389
Clermont20133253
Delaware18873136
Licking16668225
Fairfield16582204
Trumbull16559483
Medina15615273
Greene15289248
Clark14240306
Wood13296200
Portage13251216
Allen11916239
Richland11610211
Miami10857225
Wayne9147225
Columbiana9038230
Muskingum8908135
Pickaway8663122
Tuscarawas8654251
Marion8646139
Erie8058165
Ashtabula7171179
Hancock6998133
Ross6946163
Geauga6843151
Scioto6536106
Belmont6159174
Union584849
Lawrence5739102
Jefferson5681159
Huron5550122
Sandusky5444126
Darke5420129
Seneca5350128
Washington5323109
Athens524360
Auglaize502287
Mercer487585
Shelby477095
Knox4573112
Madison444566
Ashland435897
Putnam4335104
Defiance432399
Fulton432174
Crawford4045110
Brown402561
Logan387678
Preble3858105
Clinton379166
Ottawa373581
Highland359966
Williams348478
Champaign344959
Guernsey325254
Jackson318354
Perry297350
Morrow291840
Fayette285550
Hardin275565
Henry273667
Holmes2703101
Coshocton269260
Van Wert247264
Adams243256
Pike242835
Gallia240850
Wyandot234756
Hocking220663
Carroll197448
Paulding176642
Meigs148540
Monroe136345
Noble136239
Harrison114138
Morgan110024
Vinton85717
Unassigned03
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