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.

Confirmed Cases: 21960

Reported Deaths: 908
CountyConfirmedDeaths
Hennepin7421549
Ramsey255198
Stearns195912
Nobles14782
Anoka124156
Dakota116438
Olmsted57010
Washington55329
Kandiyohi4711
Rice3962
Clay38625
Scott3742
Wright2631
Todd2200
Sherburne2172
Mower2061
Carver1822
Benton1672
Steele1440
Martin1265
Blue Earth1191
St. Louis11413
Freeborn970
Pine850
Winona7815
Carlton730
Nicollet716
Cottonwood650
Otter Tail590
Polk592
Watonwan580
Goodhue583
Crow Wing561
Itasca537
Chisago491
Dodge460
Chippewa421
Meeker420
Le Sueur411
Jackson390
Morrison390
Becker370
Lyon360
Murray350
Isanti300
Douglas300
McLeod280
Waseca240
Rock210
Wabasha170
Mille Lacs171
Fillmore171
Swift160
Unassigned159
Pennington140
Brown132
Sibley130
Faribault130
Beltrami120
Wilkin113
Kanabec111
Cass112
Norman110
Pipestone100
Marshall90
Pope80
Wadena80
Aitkin70
Yellow Medicine60
Koochiching60
Renville50
Mahnomen51
Lincoln50
Grant30
Clearwater30
Big Stone30
Red Lake30
Lac qui Parle30
Redwood30
Traverse30
Houston20
Kittson10
Hubbard10
Lake10
Roseau10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 17676

Reported Deaths: 477
CountyConfirmedDeaths
Polk3821112
Woodbury264028
Black Hawk169240
Linn93676
Marshall87511
Dallas86417
Johnson6057
Muscatine54540
Wapello5174
Crawford4872
Tama39824
Scott3419
Louisa3369
Dubuque32316
Jasper25716
Buena Vista2520
Pottawattamie2207
Sioux2040
Washington1848
Wright1240
Plymouth1181
Allamakee1184
Warren1120
Story951
Poweshiek888
Mahaska858
Bremer676
Henry671
Clinton601
Des Moines591
Boone550
Cedar461
Guthrie433
Taylor400
Benton391
Jones360
Monroe354
Clarke350
Iowa330
Osceola320
Shelby310
Clayton313
Buchanan310
Marion300
Webster281
Fayette260
Hamilton250
Madison251
Monona240
Winneshiek230
Cerro Gordo221
Lee210
Davis200
Grundy190
Lyon190
Harrison190
Cherokee180
Floyd181
Jefferson180
Mills160
Delaware150
Butler150
Hancock140
Keokuk140
Greene130
Sac130
Appanoose133
Humboldt130
Ida130
Hardin130
Howard120
Jackson120
Audubon121
Cass110
Clay100
Page100
Winnebago100
Dickinson90
Carroll90
Van Buren90
Chickasaw80
Franklin80
Kossuth80
Emmet70
Adair70
Montgomery60
Union60
Lucas60
Adams50
Ringgold40
Fremont40
Mitchell40
Pocahontas40
Palo Alto30
Worth30
Calhoun20
Unassigned20
Wayne10
Decatur00
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