bdy0627
Active Member
I would guess the SEC knew the likelihood of Elon settling based upon the terms they were asking. In effect, they dictated whether he would settle or not. Seems pretty clear it was not just a fine.
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Sady the last person who said that publicly was Elisabeth Holmes.
engle
Member
A civil case could still be settled at any point. I read the entire SEC Complaint.
The market always overreacts to bad news. I'm already fully invested in $TSLA. If I wasn't, I would buy more on Friday near the intraday lows. Instead, I'll be taking home delivery of a 3P-. The positive financial impact to $TSLA of all these Model 3/X/S sales in Q3 & Q4 will be much more important over the long run to the stock and Tesla's future.
Even if the SEC pursues this to trial (Martha Stewart's case took them 2.5 years, and Mark Cuban's case 5 years) and wins, Elon has his huge stock incentive. However, the BOD would have to amend it, since:
"Throughout all of this, Musk must remain either CEO or executive chairman and chief product officer.
Ultimately, Musk could earn up to $55.8 billion in stock and awards, if Tesla's market cap reaches $650 billion. It is currently around $52 billion. Musk will receive no other compensation for his work at Tesla outside this plan."
They could give him any number of titles in addition to "Product Architect", like "Chief Visionary", whatever. He could still do all the new product introductions, etc. and be the "face" of $TSLA. He just wouldn't be on the BOD or be a "named" officer. Inside the company, he would still be the "Brain-in-Chief" of Tesla as the largest stockholder, IMHO. The new product roadmap or anything else of consequence would not change.
The court system is very slow.
The market always overreacts to bad news. I'm already fully invested in $TSLA. If I wasn't, I would buy more on Friday near the intraday lows. Instead, I'll be taking home delivery of a 3P-. The positive financial impact to $TSLA of all these Model 3/X/S sales in Q3 & Q4 will be much more important over the long run to the stock and Tesla's future.
Even if the SEC pursues this to trial (Martha Stewart's case took them 2.5 years, and Mark Cuban's case 5 years) and wins, Elon has his huge stock incentive. However, the BOD would have to amend it, since:
"Throughout all of this, Musk must remain either CEO or executive chairman and chief product officer.
Ultimately, Musk could earn up to $55.8 billion in stock and awards, if Tesla's market cap reaches $650 billion. It is currently around $52 billion. Musk will receive no other compensation for his work at Tesla outside this plan."
They could give him any number of titles in addition to "Product Architect", like "Chief Visionary", whatever. He could still do all the new product introductions, etc. and be the "face" of $TSLA. He just wouldn't be on the BOD or be a "named" officer. Inside the company, he would still be the "Brain-in-Chief" of Tesla as the largest stockholder, IMHO. The new product roadmap or anything else of consequence would not change.
The court system is very slow.
bdy0627
Active Member
I suspect this as well, which means the SEC was almost certainly setting him up to reject it. There is no way Elon would accept that.
bdy0627
Active Member
Exactly. Just think what kind of drop we would be looking at for the stock if he had agreed to that. There was really no other choice than to fight it.
WSJ
“The complaint filed by the Securities and Exchange Commission came after a last-minute decision by Mr. Musk and his lawyers to fight the case rather than settle the charges.
The SEC had crafted a settlement with Mr. Musk—approved by the agency’s commissioners—that it was preparing to file Thursday morning when Mr. Musk’s lawyers called to tell the SEC lawyers in San Francisco that they were no longer interested in proceeding with the agreement, according to people familiar with the matter. After the phone call, the SEC rushed to pull together the complaint that it subsequently filed, the people said.”
“The complaint filed by the Securities and Exchange Commission came after a last-minute decision by Mr. Musk and his lawyers to fight the case rather than settle the charges.
The SEC had crafted a settlement with Mr. Musk—approved by the agency’s commissioners—that it was preparing to file Thursday morning when Mr. Musk’s lawyers called to tell the SEC lawyers in San Francisco that they were no longer interested in proceeding with the agreement, according to people familiar with the matter. After the phone call, the SEC rushed to pull together the complaint that it subsequently filed, the people said.”
I don't think the settlement offer was ridiculous or included a lifetime ban from being CEO because Elon's team had accepted it. Elon's lawyers called it off this morning right before they were gonna jointly announce it.
I think this is a stupid case of Elon refusing to back down when he thinks he's right like with the diver guy. I just don't see any reading of securities law tho where Musk isn't guilty.
I think this is a stupid case of Elon refusing to back down when he thinks he's right like with the diver guy. I just don't see any reading of securities law tho where Musk isn't guilty.
Artful Dodger
"Neko no me"
The SEC/short strategy is clearly to NEVER let that happen. The only way to move on quickly is to go private. So it's choice time: stand and fight, or cut and run.
I don't think he would have made even a preliminary agreement for stepping down as CEO. Maybe it could have included stepping down as a director, but it seems unlikely to me that he would consider not fighting a requirement to leave the CEO job, unless perhaps it was just for a very limited time.
dmckinstry
Model X 2019
I just hope this ends up with rotten eggs all over the SEC's "face."
GBleck
Member
If you’re going to get a lawsuit this week. This feels like a good time to avoid press. Like this would be major news on any other day.
No way. I would bet MY left nut the settlement did not include being ousted as CEO.
Man I was planning to pay for my Model3 tomorrow with gains from my TSLA shares...
The 3rd quarter numbers must be pretty damn good if they rejected the settlement in the final hour.
there's no reason Elon would have ever agreed to a settlement that would also ban him from being CEO. it may be that the settlement called for a short suspension (2-6 months maybe?) and something changed with Tesla in the last day or so that Elon thinks it would be the wrong time for the settlement right now, or Elon is just being a dumbass and thinks he can win in court.
Agreed, and if the headlines actually said what you just quoted, it would be even less of a big deal... Instead they all say "Fraud" which sounds much worse.
If it is true that Elon and SEC had reached an agreement but lawyer pulled it back then I am sure the original agreement did not include Elon stepping down as CEO - there was no way Elon was going to even consider being forced out as CEO. I personally think the lawyer made a bad decision.
Artful Dodger
"Neko no me"
TSLA after-hours session Thu, Sep 27, 2018:
Total shares traded: 3,959,799
Min SP: $265.25 [7626 shares @ 7:06 pm]
Max SP: $309.80 [42088 shares @ 4:18 pm]
Avg SP: $277.73 [vol weighted]
Value of Trades: $1,099,770,919
Yup, that's right. 1 BILLION USD changed hands while you, the retail investor, were locked out of the Market.
#SECfraud
Total shares traded: 3,959,799
Min SP: $265.25 [7626 shares @ 7:06 pm]
Max SP: $309.80 [42088 shares @ 4:18 pm]
Avg SP: $277.73 [vol weighted]
Value of Trades: $1,099,770,919
Yup, that's right. 1 BILLION USD changed hands while you, the retail investor, were locked out of the Market.
#SECfraud
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So, back to the question of suing the SEC
I understand we cannot sue SEC, but is there any legal recourse for the investors who believe that SEC is protecting the anti-investors here?
I understand we cannot sue SEC, but is there any legal recourse for the investors who believe that SEC is protecting the anti-investors here?
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