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Tesla is on track for its biggest gain in nearly a month after Elon Musk and the SEC reach an agreement

Rebecca Ungarino   

Tesla is on track for its biggest gain in nearly a month after Elon Musk and the SEC reach an agreement
Stock Market2 min read

Elon Musk

David McNew/AFP/Getty Images


Tesla shareholders found some reprieve on Monday after a dismal week.

The electric-car maker's stock jumped more than 3%, placing it on track for its best one-day performance since April 1, when it gained 3.33%. At session highs, Tesla was up 3.8%.

The gains came after a brutal week for the stock, culminating in an after-hours announcement on Friday that said CEO Elon Musk and the Securities and Exchange Commission had reached an agreement over his behavior on social media.

Read more: Elon Musk and the SEC reach agreement requiring him to have an 'experienced securities lawyer' preapprove his tweets about Tesla's business

On Thursday, Tesla shares cracked below $250 apiece after the company reported a larger-than-expected first-quarter loss. The stock's move below $250 was interpreted negatively as that level has proven to be reliable support over the last two years. Indeed, it gave way to more selling on Friday, which pushed shares to a more than two-year low of $231.13.

"More negatives than positives in Q1 as Tesla swings back to a sizable loss & FCF burn, putting greater emphasis on the need to bolster balance sheet cushion, in our view," Citi analyst Itay Michaeli wrote in a note to clients on Wednesday.

Tesla was down 27% this year through Monday.

Read more Tesla coverage from Markets Insider and Business Insider:

Tesla posts huge loss, says deliveries are still on track despite 'aggressive schedule'

Tesla just closed at its lowest level in 2 years, breaking below a key price

Elon Musk loves to make grandiose promises. Here are 8 he failed to deliver on.

Get the latest Tesla stock price here.

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