TSLA Market Action: 2018 Investor Roundtable

[jeewee3000]

Everyone keeps talking about intent here, and intent doesn’t matter. He can be found guilty of recklessness.

Correct.

 

[wnorris]

CNBC reporting that:

• The settlement would have barred Musk as Chairman for 2 years
• Fined Musk and Co.
• Required company 2 new independent directors
• Required Musk neither admit nor deny culpability

Interesting…this seems a very reasonable settlement assuming the fine was no more than 10 million (off the cuff number).

I would have been agreeable to this as a shareholder.

 

[tivoboy]

The offer the SEC made yesterday was a gift. We would not be down this much if they had taken it. Musks position as CEO would be secure and we would probably be getting some better board members. AND there would not be any restrictions for necessary capital raises.

We’d be higher.

Lower will be a possible better buying oppty. But probably closer to 20% lower

Currently driving to Fremont delivery center to volunteer to help new buyers learn about their new M3.

Yes driving the car is a dream.

 

[tivoboy]

Interesting…this seems a very reasonable settlement assuming the fine was no more than 10 million (off the cuff number).

I would be very agreeable to this as a shareholder.

The number could have be 100 million and it still would have been better.

It would never be 100 million though probably in the 10-25 million range.

 

[Intl Professor]

Ugh, why is he making this so hard? Tesla is on the verge of real and lasting success. Did not need this to say the least.

I'm not sure he's trying to make thing's hard. Look at this from Elon's perspective. Bearing in mind his disdain for analogies, for him the proffer by the SEC is like a father having his prized baby snatched away just as s(he is about to receive a Ph.D. I would dig in my heels, while grabbing everything in reach of my arms.

 

[30seconds]

I would not accept that at all.

I actually read Elon's tweet live as it was sent, and within moments I knew that $420 is the standard +20% buy-out opening bid on top of the current stock price at the time of the tweet which was around $350. (I have even commented about it as it happened.)

But I'd have been upset if today was the first time I learned about it.

This is a reasonable point. 20% over the current trading price is probably close to the lower end of the range for a buyout premium.

That will be petty easy to show

 

[Fact Checking]

apparently the SEC charge was filed in New York, not San Francisco, although it was mainly SEC San Fran looking into the case. Whatever this means, we don't know, but some find it odd and assume SEC San Fran didn't have a strong enough case;

Filing in California would mean a Californian jury, with jury members who might know Tesla owners or Tesla employees, versus a New York jury ...

I suspect they wanted to avoid the Ninth Circuit (California), which is one of the strongest circuits in terms of First Amendment protection.

What the SEC tries to do here appears (to me!) to be a clear-cut violation of the First Amendment. If Elon's speech was truthful, which I believe it was, federal government agencies are given very little leeway to regulate that speech.

The SEC is not allowed to restrain the speech of convinced fraudsters who stole client funds:

Lowe v. Securities and Exchange Commission​

Let alone restrain the speech of Elon Musk who literally did nothing wrong but tried to inform shareholders ...

 

[jeewee3000]

Stock rebounding? At $276 already. Never a dull moment with this stock.

EDIT: nevermind

 

[bhtooefr]

Opened below $276, BTW, so Rule 201 should be in play, shorts can't drive it down by selling, only by scaring weak longs out.

 

[Fact Checking]

Opening price: $270.76, so I believe the 'uptick rule' prohibiting abusive short-seller price manipulation for two trading days should now be in effect. (Assuming my math is right.)

Can anyone confirm that it's active?

 

[tivoboy]

Beware the bull trap on the uptick.

 

[bhtooefr]

The latest file that NASDAQ has was generated at 4:15:20 AM: https://www.nasdaqtrader.com/trader.aspx?id=shortsalecircuitbreaker

Hopefully they update quickly.

 

[c041v]

I feel as though I need to chime in with a few observations after holding common shares of TSLA since 2012 (I got out of the Options nonsense some years back after my hands were too bloody to catch anymore knives)

Here's how I sleep quite restfully at night*;

- Accept that $100 swings in the span of weeks or even days are normal and to expect that level of volatility.
- Elon's going to Tweet. It's never a mortal wound, but there will be stitches required from time to time.
- Every ER gets a little more exciting than the last in terms of the numbers, let those numbers do the talking.

In short, as long as the lights are on in Fremont and Reno, I could care less about anything else.

*Got a TempurPedic last week, it's awesome.

*Yawns*

 

[ZachF]

Filing in California would mean a Californian jury, with jury members who might know Tesla owners or Tesla employees, versus a New York jury ...

I suspect they wanted to avoid the Ninth Circuit (California), which is one of the strongest circuits in terms of First Amendment protection.

What the SEC tries to do here appears (to me!) to be a clear-cut violation of the First Amendment. If Elon's speech was truthful, which I believe it was, federal government agencies are given very little leeway to regulate that speech.

The SEC is not allowed to restrain the speech of convinced fraudsters who stole client funds:

Lowe v. Securities and Exchange Commission​

Let alone restrain the speech of Elon Musk who literally did nothing wrong but tried to inform shareholders ...

Might not be a bad idea for some of you guys to give calls to Jerry Brown... He would probably be interested in (potentially) politically motivated charges against an employer of tens of thousands of Californians (...and probably at this point California's largest manufacturer.)

 

[shlokavica22]

The 201 Rule is in force already

 

[W84M3]

Highest volume I've ever seen; 5 Mio in under 8 minutes

I'm ready to pull the trigger

 

[ZachF]

Opening price: $270.76, so I believe the 'uptick rule' prohibiting abusive short-seller price manipulation for two trading days should now be in effect. (Assuming my math is right.)

Can anyone confirm that it's active?

I suspect shorts will cover into weak longs selling, especially since it's the last day of the quarter and they can't now add to their positions.

 

[Drax7]

Tesla is too big to fail, the public outcry over this injustice could have political
Ramifications.

Elon did not comit any fraud and I am glad he is fighting
The bullies at the sec .

 

[RoadsterPlease]

waiting for 265 then going all in

 

[Paracelsus]

The most optimistic legal analysis I’ve seen suggests that Elon has only a 50/50 shot in court. Most analysts think this case is as straight forward as it gets for the SEC (probably why it only took them two months to file).

I know there is a tendency on this board for bulls to say everything negative is a short conspiracy, but for people convinced that Elon is right to turn the settlement down which required him admitting no guilty or stepping down from CEO can you please point to some legal analysis by an expert for this basis? This is Elon’s ego over everything. Elon might genuinely believe that he did nothing wrong and I personally believe he had no ill intent. But the fact is, according to legal analysis I’ve read, when he tweeted funding secured as a public CEO he should’ve had the damn funding secured. A belief that he would get the funding is not the same as being secured, this is the crux of the case and why most legal analysts view this as a slam dunk for SEC.

Also it just got that much harder for Tesla to keep their talent or execute as this is an enermous cloud hanging over the company now.

I really hope Elon reconsiders soon and takes the settlement.

Btw I am not concerned by the DOJ investigation at all. As I understand it, Criminal would require intent and there was none.

I think we will see a LOT more posts and commentary like this soon, both here and in the 'news'.......discussing all the reasons Elon should settle. After sleeping on this topic I am certain that some of the individuals behind the Shorting and FUD campaign as well as the institutions they used to spread that information would certainly prefer Elon settle at almost any cost to keep this out of court.......even if the final negotiation is little more than a slap on the wrist, and even if it includes Elon getting to keep his position - just so their names and faces are not brought into this well-timed circus that also appears to be meant to undermine Tesla's Q3 results. Over the last year or so it was fascinating to watch Elon, Tesla, and a force of his 22 million Twitter followers connect high profile individuals and institutions to the anti-Tesla FUD campaign. The amount of information and the value of that content that they collected is likely what makes Elon and his legal team feel confident they don't need to settle IMHO. In the end it is my belief that it will be the SEC that doesn't want this to go to court. And it will be because of the pressure on the SEC by some powerful people that got caught with their hand in the cookie jar as part of that mechanism working to undermine the success of Tesla due to their desires not to be revealed. Elon's value to the world is not simply his brilliance and efforts to advance sustainability. It is also his integrity and principles that are a beacon for humanity. I don't know if this will result in a path that leaves Tesla as a public company or if it ultimately leads to Tesla going private at a much reduced cost........but either way it appears to me to be a next-level FUD fail that will result in a well timed buying opportunity.