TSLA Market Action: 2018 Investor Roundtable

[Cosmacelf]

I wonder who qualifies as a "harmed investor" to be eligible to get part of that $40 million dollars.

Yeah, I’d like to know that too ... asking for a friend.

 

[Fact Checking]

They need to do one to start Model Y and China Giga factory. The revenue from Model 3 alone won't be enough to deploy the next steps quickly.

As Elon said it during the conference call, they will finance those from local debt - local Chinese bank loans, which is debt not against the global Tesla company, but against the Shanghai Gigafactory project - so it's possibly not even on the balance sheet.

No equity raise.

 

[Open Interest]

Aha, using the FDR "stack the court" strategy eh? Actually I hope not. Good independent board members who are knowledgeable about the things that the company may need help with in the future can be a big asset IMO. I know it helped with the startup that I was involved in.

This!

 

[SO16]

Supposedly he didn't have to admit or deny anything in the settlement so that is not "leaving a fraud" accusation in place ( what does that even mean??? Never heard that in legal terms before). They've already accused him of fraud, no matter what happens next if he wins or loses in court. I'm sure it doesn't endanger other contracts. I am thinking maybe this is all a bargaining trip we're on where the SEC and Musk lawyers are now going back and forth and it puts more pressure on the SEC to settle. This is probably wishful thinking though.

This was my source.

Tesla’s Elon Musk Had a Deal From the S.E.C. It Fell Apart in a Morning.

“
That statute contains language about misleading investors. Mr. Musk’s lawyers wanted the commission to change its claim to say he was merely negligent in his statement, according to a person familiar with the details of the negotiations.

Mr. Musk was concerned about what those terms might mean for his other businesses, SpaceX and the Boring Company. He was worried the agreement could jeopardize those companies’ ability to continue working for the government, the person said.”

But doesn’t matter now. Looks like they settled.

 

[bhtooefr]

Sorry if this was already addressed, can't keep up with all the posts.
With the SEC settlement secured, will all the ambulance chasing lawyers with lawsuits against Tesla now go away? That is what the $20MM is for, for those that can prove losses? Realizing $20MM is a small gesture of goodwill. Comments please.

$40MM total.

Tesla has a separate settlement that put another $20MM into the same fund.

 

[SO16]

Why does everyone want Kimball? I like him personally but this board needs a heavy hitter that will give big institutional investors peace of mind, and that's not Kimball. That's someone like Eric Schmidt. Someone with experience managing high growth, big market cap tech companies. I just don't get the Kimball benefit, other than he's a really cool guy who loves his brother. But from investment standpoint, why?

The same Eric Schmidt who f’d over Steve Jobs about the iPhone and Android? No thanks.

 

[dennis_d]

I hope settlement includes a requirement not to post random stuff on Twitter without legal team/layer approval or some other review about the company/features

 

[Artful Dodger]

Kimbal for board president plz.
Not just because he's his brother, but because I've grown to really like the guy the last few interviews he's done.

I feel ya' but doesn't the settlement call for an Independant Chairman? Kimbal already had to recuse himself from the 'go-private' committee because of his relationship with Elon.

 

[azaz]

I definitely don't want Eric Schmidt on the board considering Google's interest in autonomy and what he did to Jobs

 

[Krugerrand]

I'm torn on how I feel about Elon right now. Yes, the media is always attacking him unfairly, but he keeps giving them rope to hang him with. I'm waiting for delivery of my 5th Tesla vehicle since 2013, and I'm sitting on HUGE paper losses since his go private tweet. The sad thing is that without the tweets we would be pushing 400 after delivery news next week. Now I'm praying for 300 after the news. I really hope Elon learned his lesson this time.

You’re speculating. None of us have any idea where the SP would be sitting today with a different set of circumstances. And there’s absolutely no way to find out.

If only I’d made the steak instead of the chicken last month, I wouldn’t have gained 5lbs last week.

 

[dmckinstry]

Lets see $1,000,000 / $1950= 513 shares.

513 shares $43 drop yesterday = You lost yesterday on paper $22,059

I think you will make that back (and more) by October 2nd.

Nah. The market is slow in responding to positive news. Wait a day or two more.

 

[Fact Checking]

New I hope settlement includes a requirement not to post random stuff on Twitter without legal team/layer approval or some other review about the company/features

Yes it does, for messages that relate to Tesla investors - Tesla's board has to create a process for that and the SEC approves it. Something like this should have been implemented already, but better late than never!

 

[ZachF]

I feel ya' but doesn't the settlement call for an Independant Chariman? Kimbal already had to recuse himself from the 'go-private' committee because of his relationship with Elon.

I'm pretty sure it's two new independent board members. Kimbal is already on the board.

 

[bhtooefr]

I hope settlement includes a requirement not to post random stuff on Twitter without legal team/layer approval or some other review about the company/features

It does.

Musk's settlement states the following:

Defendant undertakes to:
<snip>
(b) comply with all mandatory procedures implemented by Tesla, Inc. (the "Company") regarding (i) the oversight of communications relating to the Company made in any format, including, but not limited to, posts on social media (e.g. Twitter), the Company's website (e.g., the Company's blog), press releases, and investor calls, and (ii) the pre-approval of any such written communications that contain, or could reasonably contain, information material to the Company or its shareholders;

Tesla's settlement, which I don't think anyone's posted the full text of, apparently requires them to implement those procedures, per the SEC's press release.

 

[shrspeedblade]

Yeah, I’d like to know that too ... asking for a friend.

In all seriousness, would those of us who purchased stock in July in the anticipation of a big spike whether they went private or not have a claim? The way the world/wall street/government works I doubt it, but also asking for a friend.

(Besides, any nickel I can keep out of the hands of those @$$h0le$ is one I will cherish!)

 

[Fact Checking]

I feel ya' but doesn't the settlement call for an Independant Chairman?

Yeah, 'independent' in this context means not employed by the company and not a major shareholder, I believe.

There's a lot of good people out there, and Elon will be part of the selection process.

 

[X Fan]

Good news...Elon/Company didn’t need an SEC distraction during this critical period.

 

[bhtooefr]

Yes it does, for messages that relate to Tesla investors - Tesla's board has to create a process for that and the SEC approves it. Something like this should have been implemented already, but better late than never!

For messages that relate to Tesla or contain or could reasonably contain material information to Tesla shareholders.

I'm pretty sure it's two new independent board members. Kimbal is already on the board.

The question is what the actual rules for Chairman are - does independent mean independent as in not the CEO, or does it mean independent as in independent director? (I believe blood relation disqualifies from independent director, and even if it didn't, Kimbal Musk owns TSLA shares and is therefore disqualified.)

 

[Cosmacelf]

I’ve been an advocate for a stronger board for some time, not a popular view here. But I also don’t want the government to impose it. How does the SEC have this power over a publicly owned company? Will we need governmental approval of the new directors? Will shareholders be able to vote on it?

The legal theory, I think, is that Tesla, and the Tesla board, did not restrain Elon from pushing out reckless tweets. The board should have demanded tweet oversight, or a tweet process. That they didn’t is indicative of non independent board that kowtows to the CEO. Boards should not, actually, be subservient to the CEO. Their most important role is to fire the CEO should that become necessary. Hence the Tesla fine and imposition of pretty standard corporate governance.

While I’m no fan of government meddling with public markets, the reality is that’s the SEC’s job, to step in when the board, company, or CEO isn’t looking after shareholder interests whether by malice or incompetence.

If you’re worried about this minor level of corporate oversight, don’t ever try to raise funds as a public company. The SEC’s comments on a typical S-1 filing is mind boggling.

 

[ZachF]

Yeah, 'independent' in this context means not employed by the company and not a major shareholder, I believe.

There's a lot of good people out there, and Elon will be part of the selection process.

Is it an independent chairman or two new independent board members?? I'm confused here, and I can't find it in the actual settlement letter.