Tesla Jumps After Judge Makes SEC Settlement Official
The $40 million settlement between the Securities and Exchange Commission and Tesla Inc. (TSLA) is now official after U.S. District Judge Alison Nathan signed the settlement in Manhattan, Tuesday, Oct. 16.
As part of the settlement, Musk will have to step down as chairman of the electric vehicle company and will have to personally pay a $20 million fine in addition to a separate $20 million fine levied against Tesla.
The court action comes in the wake of a tweet Musk sent on Aug. 7, suggesting that he had secured enough funding to take the company private at $420 a share. The company's shares jumped after the tweet was sent, leading to an investigation into market manipulation on the part of Musk.
It was reported that Musk originally threatened to step down as CEO of Tesla if its board forced him to accept the SEC's settlement, but he apparently reversed course and agreed to resolve the allegations without admitting or denying any wrongdoing.
Tilray Jumps After $200 Price Target and Bullish Rating at Benchmark
Tilray Inc. (TLRY) shares were up 2.5% in morning trading on Tuesday, Oct. 16, after Benchmark analyst Mike Hickey initiated coverage on the Canadian cannabis company with a "buy" rating and $200 price target.
Hickey's bullish note is based on his view that the upcoming full legalization of the plant in Canada, which occurs on Wednesday, Oct. 17, will be a boon for the company. Tilray has shown early leadership in the Canadian medical cannabis market, according to Hickey.
Other tailwinds Hickey sees include the company's strategic alliance with pharmaceutical company Novartis AG (NVS) and supply agreements with Canadian pharmacies that also give the company a competitive edge.
The final tailwind, according to Hickey, is international growth from countries who have not yet fully legalized cannabis, but are expected to be on their way to doing so. The opportunity for capital infusions from those companies is enough for the company to issue a price target that is 21% higher than the company's closing price on Monday, Oct. 15, of $165.64.
U.S. futures are rising across the board Tuesday with all three major indices indicating major gains once trading starts.
Dow futures are climbing 0.57%, indicating an open 143 points higher, while S&P futures were gaining 0.51%, indicating an open 14 points higher, and Nasdaq futures are rising 0.73%, indicating an open 52 points higher.
In Asia, the Nikkei jumped 1.25%, and the Shanghai Composite dropped 0.85%, and the Hang Seng rose 0.07%.
In Asia, the FTSE 100 was declining 0.18%, while the DAX rose 0.57%, and the CAC 40 gained 0.44% with about four hours left in trading.