Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[abasile]

Tesla shares fall on report SEC asks judge to hold Elon Musk in contempt for violating deal

You guys rag on me too much for being cautious. This one was clear as day...

Concerns about the potential for this to happen were what prompted me to sell shares at $350. I've since re-bought those shares and more because TSLA is a steal at closer to $300 and below, but this concern never went away.

The current "violation" however, is pretty minor in my opinion. The issue is not that Elon did any real damage, as the stock price hardly moved, but that he and Tesla appear not to have implemented the agreed-upon controls on his Twitter posts. It was also stupid of him to tell 60 Minutes that he does not respect the SEC. I don't respect the SEC either, at least with respect to their treatment of Tesla, but we have to deal with them.

I don't see any material impact on Tesla in the long term, however. So this episode may represent another buying opportunity. On the other hand, perhaps there's a slim chance that poor treatment by the SEC and Wall Street could motivate Elon to make another attempt to take the company private or decamp to China.

 

[sundaymorning]

Shorts have a lot of influence with SEC.

That’s because the SEC is in bed with them. I hope the judge throws this out the window and put the SEC back into their place.

 

[Nuclear Fusion]

To quote my girlfriend just now in regards to Elon:
"I guess some parts of the brain are not as developed as others!"

 

[Tenable]

Well, I think the key point here is that

EM was supposed to seek pre-approval before posting company related news? If they found that EM did not do so as agreed in the settlement thats all that their claim is based on.

So now, whats the worst case? Settlement violated, so
1) Settlement revoked (do they get the 20M + 20M refund?), back to the original suit about the $420 tweet, and
2) Another case for violating settlement

I seriously hate being invested in this company.. most of the time. Years of this nonsense, it’s enough to frustrate the most diehard investor. Elon has been poking the bear, ego can be a terrible thing.

 

[MarcusMaximus]

Well, I think the key point here is that

EM was supposed to seek pre-approval before posting company related news? If they found that EM did not do so as agreed in the settlement thats all that their claim is based on.

So now, whats the worst case? Settlement violated, so
1) Settlement revoked (do they get the 20M + 20M refund?), back to the original suit about the $420 tweet, and
2) Another case for violating settlement?

(This is a question, I don't know the answer.)

This should be an interesting case. Said tweet wasn’t intended to be news, just be in line with already-stated guidance. It was just misworded. Implies that even a typo making something sound like news would violate the agreement.

 

[defc0n]

I don’t own TSLA for once when the SEC decides to go full retard again. Might buy again soon now though. After his comments on 60 minutes I am extremely not surprised of this happening. Musk needs to be free of short sellers and short seller enrichment commissions. Should’ve gone private, he has too many enemies.

 

[KarenRei]

Order to show cause:

Dropbox - 1-18-cv-08865-AJN - Simplify your life

 

[Antonio Wooman]

I am dreading how many pages of this thread I'm going to have to read in the next 24 hours...

 

[dc_h]

Well, I think the key point here is that

EM was supposed to seek pre-approval before posting company related news? If they found that EM did not do so as agreed in the settlement thats all that their claim is based on.

So now, whats the worst case? Settlement violated, so
1) Settlement revoked (do they get the 20M + 20M refund?), back to the original suit about the $420 tweet, and
2) Another case for violating settlement

What if Tesla makes 500,000 cars this year? Rumor is they are building 7000 Model 3’s per week now, plus about 2000 SX is 450,000 rate already.
On the other hand, he’s not reviewing company tweets with anyone. He just needs to text the new CFO and get a yes, no edit, ie 500,000 runnrate, not 500,000. Ok, thanks Zach.

 

[schonelucht]

Crystal clear now that this is exactly why General Council guy left hours after this tweet.

 

[Causalien]

Well, I think the key point here is that

EM was supposed to seek pre-approval before posting company related news? If they found that EM did not do so as agreed in the settlement thats all that their claim is based on.

So now, whats the worst case? Settlement conditions violated, so
1) Settlement revoked (do they get the 20M + 20M refund?), back to the original suit about the $420 tweet, and
2) Another case for violating settlement?

(This is a question, I don't know the answer.)

I think the plot is to take the company private at a lower valuation and without Saudi influence. I read about this playbook before. Another CEO did the same. Damage the brand image and then took the corp private.

 

[mtndrew1]

Oh lawd TSLAQ gonna be lit tonight.

(I’m not an investor.)

 

[SO16]

That’s because the SEC is in bed with them. I hope the judge throws this out the window and put the SEC back into their place.

That’s not going to happen.

 

[KarenRei]

From the conference call:

Colin Rusch Thanks so much. Can you talk a little bit about the geographic dispersion for the guidance for 2019, where you're expecting the Model 3s to sell through as well as the other models?

Elon Musk Well, I think we did, actually. Yes, it's clear in our letter.

Deepak Ahuja We indicated in Q1, we will start delivering Model 3s in Europe and China. And we also shared a chart showing the potential market size for midsized premium sedans in North America, Europe and Asia, suggesting those markets could be even bigger. So I think that gives a good sense of where we'll be. And we'll launch the right-hand drive version at some point to go to the other markets.

Elon Musk Yes. Maybe in the order of 350,000 to 500,000 Model 3s, something like that this year.

 

[Xpert]

Wasnt Elon supposed to have his tweets filteted before posting? Before we try to catch this falling knife tomorrow, anyone can tell us what is the worst case/likely scenario for tesla/elon?

 

[SpiceWare]

Tesla shares fall on report SEC asks judge to hold Elon Musk in contempt for violating deal

You guys rag on me too much for being cautious. This one was clear as day...

Seems that his tweet would be covered by what was said during the Q4 2018 earnings call

Colin Rusch -- Oppenheimer & Co. Inc. -- Analyst

Thanks very much. Can you talk a little bit about the geographic dispersion for the guidance for 2019, where you're expecting the Model 3s to sell through as well as the other models?
...
Elon Musk -- Co-Founder and Chief Executive Officer

Yes, maybe in the order of 350,000 to 500,000 Model 3s, I mean, like that this year.

 

[azaz]

say what you want, its just another stupid mistake by Elon.

 

[KarenRei]

"Written Communications that contain, or reasonably could contain, information material to Tesla or its stockholders must, prior to posting or other publication, be submitted to Tesla’s General Counsel and Disclosure Counsel" - Obviously Elon will argue that there was no intent whatsoever to write a post that would contain material information to Tesla or its stockholders.

 

[KarenRei]

say what you want, its just another stupid mistake by Elon.

That's just the point. It was a stupid meaningless mistake that any human could have made. My god, have you never worded a post wrong? If you did so, was your typo secretly an attempt to give out "material information"?

I want to report the SEC to the SEC :Þ

 

[StarFoxisDown!]

From the conference call:

Colin Rusch Thanks so much. Can you talk a little bit about the geographic dispersion for the guidance for 2019, where you're expecting the Model 3s to sell through as well as the other models?

Elon Musk Well, I think we did, actually. Yes, it's clear in our letter.

Deepak Ahuja We indicated in Q1, we will start delivering Model 3s in Europe and China. And we also shared a chart showing the potential market size for midsized premium sedans in North America, Europe and Asia, suggesting those markets could be even bigger. So I think that gives a good sense of where we'll be. And we'll launch the right-hand drive version at some point to go to the other markets.

Elon Musk Yes. Maybe in the order of 350,000 to 500,000 Model 3s, something like that this year.

EXACTLY...…………….this is nothing because the tweet was not any new material information. Which makes it even more obvious of the SEC's obsession with Elon.