General Discussion: 2018 Investor Roundtable

[neroden]

OK, found the *first* NYT article (apparently the second article was playing a game of telephone with the data from the first one). So it's an independent decision -- but presumably considered kosher by the SEC, which I thought was the interesting point.

"A Tesla spokesman said that Mr. Musk, a billionaire, would be buying $20 million in Tesla stock."


Elon Musk Steps Down as Chairman in Deal With S.E.C. Over Tweet About Tesla

 

[Unpilot]

OK, found the *first* NYT article (apparently the second article was playing a game of telephone with the data from the first one). So it's an independent decision -- but presumably considered kosher by the SEC, which I thought was the interesting point.

"A Tesla spokesman said that Mr. Musk, a billionaire, would be buying $20 million in Tesla stock."


Elon Musk Steps Down as Chairman in Deal With S.E.C. Over Tweet About Tesla

So if he has to buy 20 Million of Tesla stock...then what...he keeps it?
There is some speculation that he has to pay this fine to shorts who have been "hurt" by his tweets.
Talk about rubbing salt into the wounds if that is true!

 

[neroden]

So if he has to buy 20 Million of Tesla stock...then what...he keeps it?
There is some speculation that he has to pay this fine to shorts who have been "hurt" by his tweets.
Talk about rubbing salt into the wounds if that is true!

No, this is just an independent action separate from the settlement apparently.

 

[Unpilot]

Well color me confused....he has to pay a 20 million dollar fine...and buy 20 million is stock?

 

[mongo]

Well color me confused....he has to pay a 20 million dollar fine...and buy 20 million is stock?

Has to pay fine.
Also chooses to buy stock (to offset the 20 million fine Tesla needs to pay)

 

[Unpilot]

Has to pay fine.
Also chooses to buy stock (to offset the 20 million fine Tesla needs to pay)

Damn...that is so Elon.

 

[Bet TSLA]

No. The SEC settlements specify that Elon must pay a $20M fine to the SEC and that Tesla must pay a $20M fine to the SEC. Elon has separately decided to buy $20M of newly issued Tesla stock, presumably so that the fine doesn't affect Tesla's cash flow in Q4 and because he's taking responsibility.

So, in effect all of us shareholders are slightly diluted. And Elon has a bit more stock. He'll no doubt make more money on the stock in the long run than the fine cost him. True punishment.

And anybody who trusts NYT articles to get the details right is a fool.

 

[dc_h]

Gene Munster wouldn't be independent because his fund is invested in TSLA.

Jerry Brown will be unemployed soon.

 

[MP3Mike]

Elon has separately decided to buy $20M of newly issued Tesla stock,

Where have you seen that it would be "newly issued" stock?

 

[RobStark]

So nobody is talking about Quebec provincial elections.

Quebec has a very generous BEV subsidy of C$8k.

Center-Right Nationalist Avenir Quebec won 74/125 seats on Monday.

Are they going to eliminate the subsidy like the PC in Ontario?

You would think Fred would do at least one article on the subject.

 

[RobStark]

Japan's silent submarines extend range with new batteries

Mitsubishi debuts homegrown tech as Trump pressures country to buy American

TOKYO -- Japan's first submarine powered by lithium-ion batteries was launched on Thursday, symbolizing domestic defense contractors' hopes that innovations can allow the industry to survive amid renewed pressure from Washington to procure more American military gear.

 

[BioSehnsucht]

Where have you seen that it would be "newly issued" stock?

Isn't that the only way that buying $20M in stock gives $20M to Tesla to cover their settlement costs?

What I want to know is, does he have to buy at current market prices, or can he get a discount using compensation options he hasn't made use of yet? Because if he can get $20M of shares at a deep discount (i.e. if could get them for half price, he'd still pay $20M but he'd actually be getting $40M worth), it might put him that much closer to being able to take Tesla private if the fancy strikes him again.

Of course it might be more advantageous if he bought them at market prices, and saved those options for later.

 

[alloverx]

Not sure if this has been posted already but in case not. ABC news about Tesla battery

 

[BioSehnsucht]

Not sure if this has been posted already but in case not. ABC news about Tesla battery

To be clear, that's Australian Broadcasting Corporation, not American Broadcasting Corporation, in case anyone was assuming the latter.

 

[bhtooefr]

Isn't that the only way that buying $20M in stock gives $20M to Tesla to cover their settlement costs?

Giving $20M to Tesla to cover settlement costs isn't, AFAIK, actually allowed under this settlement - I think Tesla may actually have to refuse to sell Musk those shares? Not sure how that works.

 

[mongo]

Giving $20M to Tesla to cover settlement costs isn't, AFAIK, actually allowed under this settlement - I think Tesla may actually have to refuse to sell Musk those shares? Not sure how that works.

Elon's settlement prevents compensation for the fine, I have not seen Tesla's. Hard to prove anyone's motives on that scale.

 

[bhtooefr]

Tesla's also prevents compensation.

 

[JRP3]

But does it prevent Tesla from selling new shares?

 

[Yggdrasill]

Tesla can sell new shares. But that is a cap raise, something Tesla has said it won't do.

And Musk certainly can't do a cap raise whenever he feels like it, and where only he himself can take part.

The 20 million would have to be either that Musk exercises some of his options - in which case the company gets a cash infusion. Or he would buy them on the open market, in which case the company does not get a cash infusion.

 

[BioSehnsucht]

Do we know what price Musk's options are to him ? I am curious how much stock he'd get for $20M cash (probably a lot more than $20M open market equivalent)