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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: 604687

Reported Deaths: 7643
CountyCasesDeaths
Hennepin1250161780
Ramsey52519898
Dakota46852471
Anoka42789458
Washington27436291
Stearns22561225
St. Louis18146313
Scott17553137
Wright16383149
Olmsted13406102
Sherburne1202795
Carver1067448
Clay826592
Rice8204110
Blue Earth762744
Crow Wing681895
Kandiyohi668185
Chisago620152
Otter Tail586284
Benton582998
Goodhue484074
Douglas475781
Mower470533
Winona461451
Itasca460163
Isanti440364
McLeod430961
Morrison424962
Beltrami407962
Nobles407750
Steele397816
Polk389072
Becker386755
Lyon363853
Carlton353056
Freeborn347133
Pine334923
Nicollet331345
Mille Lacs311854
Brown308040
Le Sueur297326
Cass286332
Todd285633
Meeker263543
Waseca238023
Martin235333
Roseau211221
Wabasha20793
Hubbard196641
Dodge18783
Renville182846
Redwood176539
Houston174616
Cottonwood167124
Wadena163423
Fillmore157610
Faribault155219
Chippewa154038
Pennington153820
Kanabec146828
Sibley146810
Aitkin138937
Watonwan13579
Rock128719
Jackson122812
Pipestone116726
Yellow Medicine115020
Pope11306
Murray107110
Swift106918
Koochiching95518
Stevens92411
Clearwater89016
Marshall88817
Lake83220
Wilkin83213
Lac qui Parle75622
Big Stone6044
Grant5948
Lincoln5853
Mahnomen5669
Norman5479
Kittson49022
Unassigned48393
Red Lake4017
Traverse3775
Lake of the Woods3453
Cook1720

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 371226

Reported Deaths: 6056
CountyCasesDeaths
Polk58274641
Linn21241339
Scott20311248
Black Hawk16180312
Woodbury15241230
Johnson1462285
Dubuque13515211
Dallas1129499
Pottawattamie11233174
Story1072048
Warren583891
Clinton561593
Cerro Gordo554196
Sioux517674
Webster516094
Muscatine4884106
Marshall487176
Des Moines467672
Wapello4337122
Buena Vista427040
Jasper421172
Plymouth403181
Lee382556
Marion366176
Jones301057
Henry294537
Bremer288761
Carroll287252
Boone268534
Crawford268340
Benton260355
Washington257551
Dickinson249344
Mahaska232751
Jackson225242
Clay216727
Kossuth216166
Tama212271
Delaware211143
Winneshiek198935
Page194522
Buchanan194133
Cedar192323
Hardin187544
Fayette186943
Wright186140
Hamilton182051
Harrison179973
Clayton171157
Butler166535
Madison164519
Mills163924
Floyd163542
Cherokee159338
Lyon158941
Poweshiek157136
Allamakee152852
Hancock150334
Iowa149724
Winnebago144531
Cass139255
Calhoun138813
Grundy137433
Emmet135841
Jefferson133335
Shelby131637
Sac130920
Union130035
Louisa129849
Appanoose129049
Mitchell126743
Chickasaw124917
Franklin123523
Guthrie123332
Humboldt119626
Palo Alto113523
Howard105022
Montgomery103638
Clarke101124
Keokuk96832
Monroe96431
Unassigned9550
Ida91635
Adair87432
Pocahontas85822
Davis85325
Monona83431
Osceola78917
Greene78011
Lucas77923
Worth7628
Taylor66812
Fremont6279
Decatur6169
Ringgold56424
Van Buren56418
Wayne54423
Audubon53411
Adams3444
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