Tesla Shares Bounce Back After Friday Decline

The electric-car maker’s stock surged 17% in morning trading following Elon Musk’s settlement with securities regulators over the weekend

Tesla Inc. shares soared Monday after Elon Musk reversed course and settled with U.S. securities regulators over the weekend, a surprising decision that put to rest the threat of his removal from a company inseparable from his name.

As news of the settlement unfolded over the weekend, Mr. Musk also sought to rally employees in an email that stressed the electric-car maker is “very close to achieving profitability and proving the naysayers wrong.” He also wrote “but, to be certain, we must execute really well tomorrow (Sunday)....