Musk is Tesla. There would be NO TESLA without him.
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SEC Lawsuit
- Thread starter Buggle
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- Elon Musk Tesla Inc.
Might be a good opportunity to make a few bucks on options. Stock will be down a lot tomorrow, then should shoot back up next week when they announce how many cars they delivered in Q3. Possible $40-50 swing in a week.
Those looking for proof of the violations just need to read the SEC claim. It's pretty much all in there.
This all could be good long term for Tesla - either drive them private, or make Elon step down as CEO and hand it over to another Gwynne Shotwell, so he can just be the strategist / visionary. The SEC isn't forcing him out of the company, just out of any role where he controls shareholder money. It's very rare for entrepreneurs to run their start-ups after they get this big - almost all hand the reigns over to a seasoned CEO.
Oh, and I wish there was a body like the SEC that could file a similar claim against our tweet-liar-in-chief that would prevent him from ever holding a government office again!
Those looking for proof of the violations just need to read the SEC claim. It's pretty much all in there.
This all could be good long term for Tesla - either drive them private, or make Elon step down as CEO and hand it over to another Gwynne Shotwell, so he can just be the strategist / visionary. The SEC isn't forcing him out of the company, just out of any role where he controls shareholder money. It's very rare for entrepreneurs to run their start-ups after they get this big - almost all hand the reigns over to a seasoned CEO.
Oh, and I wish there was a body like the SEC that could file a similar claim against our tweet-liar-in-chief that would prevent him from ever holding a government office again!
dmckinstry
Model X 2019
Another new member posts. But I wouldn't impugn your motives. Yet.
Absolutely I think the SEC has a charge to preserve shareholder value. They took how long to do something about Theranos? And this was done lickety split. Fishy.
It is time for Elon to keep his mouth shut for awhile and get a P.R person to do his tweets. Let this storm die down a bit. Concentrate on getting the work done and less on being in the public eye.
We're getting a lot of opinion here, but I can't evaluate it as I don't know who's speaking and I'm not in finance. I'd be interested in hearing from V.P.+ level money men with 20+ years experience if they feel the SEC is being heavy handed here. Pls remove pro Tesla bias from replies. What I'm wondering is has something similar been applied to other companies in the past for similar transgressions, or is Tesla feeling the trump effect?
Theranos was never a publicly traded company so all their few investors were wealthy and accredited. They weren't screwing the general public. Also the evidence with Elon was a lot more public than with Theranos.
webdbbt
Member
I watched the SEC news conference live from their website and the after hours trading activity. Added a few shares to my tiny position in TSLA.**
My take (I am not a lawyer):
**This is not financial advice. TSLA is a risky investment.
My take (I am not a lawyer):
- "Fraud" will be hard to prove. Doesn't someone have to intentionally benefit for it to be fraudulent activity? The complaint does not assert any benefit to Musk (or anyone) from his tweet.
- The SEC remedy of removing Musk from Tesla and prohibiting him from running a public company is a ridiculous overreach. It's a negotiating position. They'll give this up to settle.
- Even if Musk leaves, as largest shareholder he will still have huge influence. I don't expect he would pull a Steve Jobs/Apple move of selling all his stock in anger.
- Tesla is now established. The company is not going away.
- It's very curious how the SEC reached a decision so quickly. As someone already said the SEC took two years(!!) to investigate Theranos. The big shorts are the types who know people who know people in the SEC. I'd look for undue influence in the decision-making process.
**This is not financial advice. TSLA is a risky investment.
Good points. Still, this seems to be counter intuitive and also be overreach.
Here is the thing, the SEC should be interested in preserving shareholder value. By threatening to remove Musk as CEO, they are threatening to significantly affect the value of the company. Musk is Tesla just as Jobs was Apple. People buy the cars and the stock because they believe in Elon.
webdbbt
Member
Just to add to my last: Musk was reckless with his tweet. The SEC can probably win that point, maybe easily. But I think this will settle quickly. The Tesla board should not let it go to a jury trial.
my thoughts are because there isn't much to investigate.. they interviewed Elon and he told them everything. not much more to add to the case, would there be?
lol, BBC. don't they have better people to quote than some rando on a forum? what are they going to quote next, bathroom graffiti?
Excellent points and I agree with all of them including your follow up. The SEC just wants to fine Elon in a big way. It will probably get resolved in a medium to small way.
If the $420 per share money suddenly appeared somewhere the SEC would have nothing on Elon. Deal wouldn't even have to go through, you just need to say "ya we have the money, decided not to go through with it though"
Anyone care to start a GoFundMe campaign for basically $70 Billion to make it happen?
let's help Elon out
Anyone care to start a GoFundMe campaign for basically $70 Billion to make it happen?
let's help Elon out
dark cloud
Active Member
the biggest factor is the answer to question 1. Did he or others within arms length gainfully benefit from his tweet?
it's a new world with trump (well, more like the old world in truth), so I wouldn't assume anything.
voip-ninja
Give me some sugar baby
No this is a CEO who doesn’t know when to shut up who broke the law. SEC says they have proof funding was NOT SECURED and that he did not give the market any warning.
If SEC did not go after Musk over this they would not be doing their job.
I would have expected a smaller fine but maybe that’s what gets negotiated in the end.
I think what you're saying is clear and indisputable. What is in dispute is the penalty they're suing for. Removing him as CEO? For a tweet where within a week the stock price had retreated anyhow? Again, I'm not a finance guy, but this seems to me like killing a fly with a hydraulic hammer. I'd also question why there's a concurrent DOJ investigation.
voip-ninja
Give me some sugar baby
It doesn't matter what happened a week after the tweet went out. What matters from the SECs perspective is that he made a public statement that affected the stock price and that statement was not based on fact. Musk back pedaling and claiming that the Saudis were his funding secured source clearly didn't pan out when the SEC investigated it.
Lots of investors lost money when Musk made that statement. That's why they are also suing him.
I just bought a $60,000 Tesla and this stuff makes me nervous. Musk taking Tesla down in flames to stoke his own ego won't do me any good if my car ends up a devalued and unsupported car in a couple of years if Tesla is driven to acquisition or bankruptcy.
We should all be asking ourselves now what the best path forward is, and it very well might be that the best path forward involves Elon taking a break from running Tesla for the next 6-12 months.
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