*By Carlo Versano*
Shares of Tesla jumped more than 15 percent in the pre-market Monday on news that CEO Elon Musk settled a lawsuit with the SEC over Musk's social media use.
Under the terms of the settlement, Musk will step down as chairman of Tesla ($TSLA) for at least three years but can remain in the chief executive role. He and the company must each pay $20 million in fines. Two independent board members will also be appointed.
Federal regulators sued Musk last week, arguing that his infamous Aug. 7 "funding secured" tweet amounted to securities fraud. The lawsuit was filed after Musk reportedly scuttled a last-minute deal with the agency under which he would resign as chairman and pay a fine but not admit to any wrongdoing. Talks restarted soon after, and by Saturday a new settlement was in place.
The settlement takes care of one major headache for investors, who will now look to the car maker's third-quarter production and delivery numbers, which may be reported as early as Monday. Musk [reportedly] (https://www.cnbc.com/2018/09/30/elon-musk-tells-tesla-to-ignore-distractions-hints-at-profitability.html) emailed employees over the weekend, telling them to "ignore all distractions" and that the company was approaching profitability.
Garrett Nelson, a senior analyst and VP of equity research at CFRA Research, joined Cheddar News to give a preview of Tesla earnings amid its seventh straight record quarter in vehicle deliveries while it faces some headwinds with the ongoing Shanghai, China, lockdown due to pandemic. "We view Tesla as one of the market's best secular growth stories," he said. "It's one of our top picks, and their execution has been really stellar over the last several quarters. They've beat nine of the past 10 quarters, so that's a 90 percent beat rate."
Netflix is slated to give its Q1 report after the closing bell, and Jason Moser, a senior analyst at The Motley Fool, joined Cheddar News to give a preview of what to expect from the streaming giant's earnings. "I think Netflix, like many businesses out there the last couple of years, says it's pulled forward a lot of success just due to the pandemic, and that's not necessarily a bad thing," he said. "But it does alter the picture, the growth picture maybe, going forward." Moser also noted that the streaming space for Netflix is especially competitive now as opposed to about a decade ago.
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