Short Sellers Sue Musk

[Barklikeadog]

I'm going to challenge on this assertion. CNBC says it, quoting Fox, who claim "two people said it". When have you ever heard about SEC subpoenas before? I think it's fake news.

Representatives for the SEC and Tesla declined to comment. -WSJ

If this were fake, Mr Twitter would be lighting up the liars right now. I'm gonna lean real.

 

[strangecosmos]

Yet another opinion:

Tesla and its CEO, Elon Musk, aren't likely to face more than a small fine or stern warning if the US Securities and Exchange Commission ends up launching an investigation and bringing an enforcement action against Musk or the company, Nimish Patel, a partner at the law firm Mitchell Silberberg & Knupp who specializes in corporate and securities laws, told Business Insider.

Source: Business Insider.

 

[neroden]

We've heard similar from several others. There may be a small fine or stern warning for material misstatements, but given that Musk's intent is -- very clearly -- to take the company private -- nobody's going to be able to sustain the false claim that Musk intended to manipulate the stock price.

 

[cpa]

So, now that the stock price has dropped down to $305 and change, just how have the short sellers been damaged? The closing price on the day prior to the ill-fated tweet was around $300. The high price the past couple of weeks was $379 and change. Any damages will be inconsequential and difficult to prove. We are talking about a volatile stock. Let's assume Musk never touched his tweeter account. Who is to say that the stock would not have risen slowly the past two weeks and closed yesterday at $325, instead of remaining essentially unchanged. Part of this downward movement has got to be with all the press that Musk has received lately as well as the pending investigation by the SEC.

Big deal, there was a ten-day period where the shorts had to pony up additional collateral, or perhaps a few had to close out a percentage of their short positions. But today, they are essentially back where they were 18 days ago. Five bucks is immaterial, and the price could even drop further over the next 4-6 weeks given its historic volatility.

I am not a lawyer, just a bean counter. To me, this is just a grandstand play--a veiled threat--to keep the shorts in the news, to distract Tesla and Elon Musk, and to pander to the uneducated masses.

And in my ignorant viewpoint, option players on Tesla stock are not short sellers. They are only at risk as far as their premium is concerned, and options players should be acutely aware of the volatility of any option contract, especially Tesla.

 

[Barklikeadog]

So, now that the stock price has dropped down to $305 and change, just how have the short sellers been damaged? The closing price on the day prior to the ill-fated tweet was around $300. The high price the past couple of weeks was $379 and change. Any damages will be inconsequential and difficult to prove. We are talking about a volatile stock. Let's assume Musk never touched his tweeter account. Who is to say that the stock would not have risen slowly the past two weeks and closed yesterday at $325, instead of remaining essentially unchanged. Part of this downward movement has got to be with all the press that Musk has received lately as well as the pending investigation by the SEC.

Big deal, there was a ten-day period where the shorts had to pony up additional collateral, or perhaps a few had to close out a percentage of their short positions. But today, they are essentially back where they were 18 days ago. Five bucks is immaterial, and the price could even drop further over the next 4-6 weeks given its historic volatility.

I am not a lawyer, just a bean counter. To me, this is just a grandstand play--a veiled threat--to keep the shorts in the news, to distract Tesla and Elon Musk, and to pander to the uneducated masses.

And in my ignorant viewpoint, option players on Tesla stock are not short sellers. They are only at risk as far as their premium is concerned, and options players should be acutely aware of the volatility of any option contract, especially Tesla.

what did you get on the series 7?

 

[cpa]

Please explain what functions of the series 7 test has to do with actual or vicarious liability by a publicly-traded company, and how a stockbroker is an expert on assessing damages or requesting injunctive relief.

Go bark up another tree.

 

[mershaw2001]

Those tha

So, now that the stock price has dropped down to $305 and change, just how have the short sellers been damaged?

Those who held their positions have no claim for damages, a paper loss doesn't cut it for law suits. Only those who cashed out, or were forced to cash out, with a loss will be able to demonstrate loss. It doesn't matter if they could have held and made a profit.