Well, no one (other than maybe the shorts, press and SEC) knows just how low it will go. But given the high volume in after hours trading I'll be surprised if it doesn't drop a lot more in the morning. I'm expecting it to go below 250. Keep in mind this will be in the financial news tonight and in the morning. The hilarity of the filing will be glossed over. The serious nature of the accusation will be highlighted. The imminent death of Tesla will be exaggerated. IMO the *worst* case for investors is that stock drops very low and is finally delisted. Expect that to be presented as *best* case. The news thrives on negativity and stocks sell on it. I would be happy to be wrong -- though I won't mind snagging as many undervalued shares as I can.
The take away then is if we can find the evidence of foul play. Frankly, I've seen enough "coincidence" to convince me that unless we do something about it, TSLA will get railroaded into the ground. So, as investors, how do we fight back against the SEC action?
The parties are not monolithic, though. (Not even the Republican party, although they're certainly trying to make it monolithic.) In particular, the Democratic party covers a range from pro-business (the former "moderate Republicans") all the way to socialists. And, even if Musk angered some Democrats and people to the left of Democrats (he absolutely did), that doesn't mean that they're all supporting the death of Tesla.
I think if EM was going to engage in a fraudulent act, you would have seen a pattern of this over the years. And his good intentions/actions over the years should speak much louder than 'two words'. If they don't, then I have two words for the SEC!
I don't think it would help in the suits against Tesla, but it would likely help in the suits against Musk personally.
Elon had good reason to believe that buyers did in fact exist. This is plain for anyone paying attention to see.
I'm not so sure dragging it out for years is a positive approach. These cases can be exhausting and extremely distracting. In some ways I would like to see him fight it, but I think the best way forward for Tesla is to try to get it settled as quickly as possible and move on.
More importantly, even the SEC doesn’t say no buyer existed to that point. They note that the Saudis did, indeed, meet with Musk and stated they were able to and willing to fund a go-private deal given any reasonable terms. The SEC’s objection seems to be to the fact that Elon assumed his terms would be reasonable to them, such that it was a sure thing.
But there were buyers. Saudi Arabia bought a 5% stake in the company right before Elon's tweet. As Artful Dodger pointed out, that was what really spiked the stock price that day. Maybe this SEC action was about saving face, but it most definitely isn't grounds to worry about the value of TSLA. Not when the company's so close to profitability and thus negating any concern about paying off the long-term debt.
Elon may have screwed up, but not intentionally to cause harm or profit for himself. This SEC move stinks of Trump Administration involvement backed by PetroDollars. This needs to be looked into.
IMHO, if a jury trial is required by a jury of his peers that's impossible, unless fellow true investors (not traders) would fit that category.
Actually the SEC doesn't say that. If you read the relevant sections of the complaint (para 17 onward) you will see that all discussion of the Saudi position is qualified by "according to Musk".
Right, which means Elon realistically believed he had willing buyers. No intent to defraud investors, case closed.