TSLA Market Action: 2018 Investor Roundtable

[tivoboy]

Could the board appoint Kimbal CEO and have Elon work for him?

Oh god please help us no

 

[mongo]

from the press release:

“Taking care to provide truthful and accurate information is among a CEO’s most critical obligations,” added Stephanie Avakian, Co-Director of the SEC’s Enforcement Division. “That standard applies with equal force when the communications are made via social media or another non-traditional form.”

Well there's their problem, they can't tell that it was Elon saying he was considering taking Tesla private, not the CEO speaking for the company....

 

[CuriousSunbird]

because two weeks later he had funding of 30 billion dollars not just secured, but committed as well - independently of the Saudi offer to take Tesla private. So there were two credible sources of funding.

We don't really know that - it comes from a leak to the WSJ which was not backed by evidence,, and which was subsequently refuted by the Volkswagen CFO (Volkswagen having been mentioned as one of the funding sources).

 

[mltv]

 

[Dangleitus]

The SEC is moving. I would expect the DOJ pile in later.

Very risky holding this long. But I bet it will find support at 270, maybe 250. It won't be over as quickly as us shorts claim.

Mod: Highly speculative for those who are fact based investors.

 

[gtrplyr1]

If you're foolish enough to buy into the BS "case" the SEC is bringing that's your problem. Again, Elon did nothing wrong with those tweets, they are trying to railroad him.

I am having a hard time understanding how the SEC moved so quickly .... I've been an Apple long for many years and heard tons of BS that should have been investigated ...never was. I'm sure there is pressure from many who have a lot to lose if/when Tesla redefines the auto market .. but still at the end of the day Elon runs a PUBLIC corporation and there are definitely rules that are in place ... I'm no expert but I don't see how that tweet wouldn't have crossed the line if NOT TRUE.

Let's hear the other side but as a long .... I'm not happy with his tweeting. Doesn't do the stock, company or ultimate mission one bit of good, I don't see how anyone can argue that point.

The real shame is that TSLA will report numbers Monday and that should have been a special day for all of us (company included) .... it's huge and this cloud will be hanging over TSLA's head. It's a real shame.

 

[mekberg]

Timing is sus

 

[tivoboy]

The SEC is moving. I would expect the DOJ pile in later.

Very risky holding this long. But I bet it will find support at 270, maybe 250. It won't be over as quickly as us shorts claim.

I’m going to put a “support” number out there. You’re not going to want to hear it

200$

Let the DISAGREE train begin.

 

[HopJokey]

Elon responds:

CNBC Now on Twitter

Edit: N/M the post was removed.

 

[Artful Dodger]

Boomberg strikes again. And the timing of the announcement won't "adversely affect" shareholders? Seems in America, only Shorts have Rights. China looking pretty good right now.

 

[JRP3]

Let's hear the other side but as a long .... I'm not happy with his tweeting. Doesn't do the stock, company or ultimate mission one bit of good, I don't see how anyone can argue that point.

Because the facts are that his tweets have also done the company quite a bit of good. Some people seem to forget all about those.

 

[tivoboy]

Elon responds:

CNBC Now on Twitter

Edit: N/M the post was removed.

Yeah he better just say nothing at this point at all. Till they come up with the plea. Plead it and pay the fine and take the penalty.

 

[Wooloomooloo]

That's not the legal standard though: he only had to be very certain that funding is secured and tweet truthfully, without an intent to deceive - and apparently he was truthful, because the Saudis told him that they wanted to take Tesla private and already invested 5% into Tesla.

/snip

So I don't see how the SEC has a case here.

Yes this - pretty much nails it.

The other thing is to look at why Tesla didn't actually go private. It wasn't because there wasn't money and weren't parties to make it happen (there clearly were) it was because 5 of the top 6 Shareholders (various funds) would not be able to retain a stake in the new private company (ironically because of SEC restrictions) and (understandably) wanted to stay invested in Tesla.

One additional piece of evidence that helps Musk (albeit intuitively) is that the share price never got anywhere close to $420 - it peaked just under $380 and dropped again. Why? Because aside from panicking shorts, no one took Musk's tweet to mean "we're definitely going private". The SEC is over stating the influence of the tweet, and as you said before cannot prove intent.

 

[Causalien]

I am having a hard time understanding how the SEC moved so quickly .... I've been an Apple long for many years and heard tons of BS that should have been investigated ...never was. I'm sure there is pressure from many who have a lot to lose if/when Tesla redefines the auto market .. but still at the end of the day Elon runs a PUBLIC corporation and there are definitely rules that are in place ... I'm no expert but I don't see how that tweet wouldn't have crossed the line if NOT TRUE.

Let's hear the other side but as a long .... I'm not happy with his tweeting. Doesn't do the stock, company or ultimate mission one bit of good, I don't see how anyone can argue that point.

The real shame is that TSLA will report numbers Monday and that should have been a special day for all of us (company included) .... it's huge and this cloud will be hanging over TSLA's head. It's a real shame.

You don't see apple ceo twitting stock moving information that actually causes damages to both long and shorts alike. Also, apple is a lot more powerful than tesla in politics as well. Trump made an exemption for apple parts in his tariffs even though most of apple's factories are in China. That's how powerful apple is.

SEC also has a political component to it. Most people think the judicial arm is completely impartial, but it is not so. They have to get elected or appointed by other politicians into their place as well.

 

[Fact Checking]

I am having a hard time understanding how the SEC moved so quickly

They had to move quickly, as the Q3 delivery report is only ~2 trading days away ...

 

[Wooloomooloo]

I’m going to put a “support” number out there. You’re not going to want to hear it

200$

Let the DISAGREE train begin.

It won't hit that low, because even if the SEC provide a, iron-clad case, and even if you hate Musk, the worst that will happen is a relatively small fine and Musk being removed. Tesla won't vanish and some people think Tesla will be better managed without him - regardless he'll still be a major decision maker owning almost 20% of the company.

 

[mrdoubleb]

1, While emotions will run high on this one until the case is closed, can we all agree, that this is a complaint by the SEC and not a court's final judgement? Elon has/will hire some top notch lawyers and will defend himself in court (unless they settle).

2, Isn't it ironic, that under the claim of protecting shareholders and the main charge being Elon causing a 6% temporary rise in SP, the SEC has just tanked the stock by 10% or more?

 

[JRP3]

Yeah he better just say nothing at this point at all. Till they come up with the plea. Plead it and pay the fine and take the penalty.

I expect and hope he will fight it.

 

[HopJokey]

Here is the response from Elon:

Elon Musk calls SEC fraud lawsuit 'unjustified,' says he acted in best interests of investors

"This unjustified action by the SEC leaves me deeply saddened and disappointed," Musk said in a statement to CNBC. "I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."

 

[Dangleitus]

I’m going to put a “support” number out there. You’re not going to want to hear it

200$

Let the DISAGREE train begin.

I own puts, so the lower it goes, the happier I am. I am trying to be pragmatic here based on how the stock has reacted year to date.

That said, I could see 200. I'd like to see 0, but I see this stock being even more volatile w/ higher volume going forward.

Mod: Removal of post imminent under gloat goat rule.