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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 11:41 AM
Updated: Oct 1, 2018 11:53 AM

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.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 453808

Reported Deaths: 6131
CountyCasesDeaths
Hennepin941381495
Ramsey40509748
Dakota33463350
Anoka31283368
Washington20471234
Stearns18051190
St. Louis13916247
Scott1213098
Wright11756107
Olmsted1073975
Sherburne827868
Carver703139
Clay657684
Rice621170
Kandiyohi556772
Blue Earth546833
Crow Wing489178
Otter Tail463167
Chisago458138
Benton423288
Winona394248
Douglas378466
Nobles374447
Mower372129
Goodhue355362
Polk330660
McLeod327947
Beltrami315048
Morrison314145
Lyon304738
Becker288839
Itasca287143
Isanti284842
Carlton283543
Steele278510
Pine269614
Freeborn253623
Todd233130
Nicollet227938
Brown217434
Mille Lacs215045
Le Sueur213516
Cass210524
Meeker201233
Waseca192816
Wabasha17413
Martin171726
Roseau166317
Hubbard150238
Redwood141027
Houston139814
Dodge13864
Renville138040
Chippewa132332
Cottonwood128918
Fillmore12646
Wadena120218
Rock111912
Aitkin111233
Sibley10947
Faribault108816
Watonwan10688
Pennington101016
Kanabec99318
Pipestone96423
Yellow Medicine94916
Murray9096
Jackson87310
Swift84418
Pope7465
Stevens7078
Marshall70315
Clearwater68714
Lake66315
Lac qui Parle66016
Wilkin6349
Koochiching60310
Lincoln4892
Big Stone4693
Unassigned44568
Grant4388
Norman4258
Mahnomen4147
Kittson37320
Red Lake3204
Traverse2613
Lake of the Woods1961
Cook1150

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 310915

Reported Deaths: 4432
CountyCasesDeaths
Polk46760465
Linn18037279
Scott15838172
Black Hawk14076243
Woodbury13111181
Johnson1228552
Dubuque11615159
Pottawattamie9146115
Dallas907772
Story879438
Cerro Gordo472572
Webster472077
Sioux459657
Warren458039
Clinton457768
Marshall430762
Buena Vista396230
Muscatine395878
Des Moines394943
Plymouth352870
Wapello349898
Jasper331659
Lee324132
Marion308953
Jones274650
Henry267331
Carroll258234
Bremer249848
Crawford234324
Washington222933
Boone222717
Benton213050
Mahaska197637
Jackson194932
Tama190159
Dickinson188329
Kossuth178544
Delaware176036
Clay172021
Wright166624
Fayette165924
Hamilton162230
Buchanan162024
Winneshiek160820
Harrison158162
Hardin156931
Cedar155519
Clayton153849
Butler150924
Page146415
Floyd141436
Cherokee140027
Mills138517
Lyon137533
Poweshiek134924
Hancock131524
Allamakee130930
Iowa127722
Madison123610
Calhoun12349
Grundy122528
Jefferson122125
Winnebago121729
Mitchell116837
Louisa116230
Cass114843
Chickasaw113712
Appanoose112440
Sac112015
Emmet111232
Union111023
Humboldt106619
Shelby105427
Guthrie104224
Franklin103318
Unassigned10110
Palo Alto91711
Montgomery88324
Keokuk86326
Howard85519
Monroe82220
Clarke8108
Pocahontas78111
Ida75930
Davis70121
Greene6977
Adair69620
Monona67018
Lucas66610
Osceola64711
Worth6184
Taylor5999
Fremont5246
Van Buren50215
Decatur4964
Ringgold44811
Audubon4218
Wayne41921
Adams2993
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