Elon Musk being sued by SEC.

SEC press release: SEC.gov | Elon Musk Charged with Securities Fraud for Misleading Tweets

Legal filing: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rESU9sUHniuA/v0

One business day remaining before the end of Q3. Looking forward to the financials.

Bob Wilson

 

If he did something wrong, he should pay the price.

Did he 'gain' by bumping the stock temporarily? Did he choose to make any stock sales during that period?
If so, bring down the hammer on him.
If he was not careful with his wording, go ahead and fine him, but treat all the others the same.

 

40 points after-hours, tough to get back, ok, there might be another dead cat bounce, hope everyone that's not a pro has a -10% sale setup.
Guessing Musk will be leaveing and the company will be valued at a realistic price, remember, shorts serve the purpose of keeping inexperienced investors from giving the house title to the SEC, nobody wants to see a creative inovative company disappear, but let's stop crazy.

 

Stock currently down >13% in after hours trading. If it is like this at market open tomorrow, I will likely put in a buy order to join the circus.

 

I'd be guessing you are wrong
By what we know, Musk was considering going private and he did, in layman's terms, have a verbal agreement for funding.
Musk didn't, to my knowledge, gain from the short surge in pricing and as such, the worst I see happening is a fine.

Musk does need help with some aspects of running Tesla and it looks like he has already delegated some of his duties. More may be in the works, but certainly not him leaving.

 

if he leaves, it's over, and all the pretenders will drop their bev r&d. he is the only person in the world forging ahead, everyone else is a fake and a phony, subject to the whims of carb.

 

Another day another Tesla story guys!

It will be forgotten in 3 months

 

Reviewing the SEC court filing: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rESU9sUHniuA/v0

Quoted Musk: "Am considering taking Tesla private at $420. Funding secured."

• "Am considering" - not announcing Tesla going private but something he wants but not yet achieved.
• "taking Tesla private at $420." - a goal, not an announced accomplishment.
  
• "Funding secured." - so the question is could Musk have been misled?

To me, this is the only part of the government case that may have standing. So let's take a close look:

"3. Musk knew or was reckless in not knowing . . ." - Here the government claims either "Musk knew" or "not knowing." Short of an essay by Musk on the legal requirements of how a company goes private or even a corporate takeover is done, this is a heavy lift. There is nothing else but an outline of the steps needed to go private. This would be an excellent outline for a business school class on 'how it is done.'​

Silly statement "4. Investors reacted ..." simply goes back to stocks are a gamble. Their reactions have no bearing on whether or not Musk was misled on "Funding secured." The following "5. Musk's ..." is a restatement of #4.

Addressing the legal basis, "6. By engaging in the conduct alleged ..." which means it is something to be decided in a jury trial. Items 7-9 are restating the legal basis.

Now in terms of remedies, "10. ... Musk oversees all product development, engineering, and design of Tesla's products." Now the SEC has identified how critical Musk has been to Tesla operations. This significantly risks the future of Tesla as a company because as restated in "11. Tesla, which designs, develops, manufactures, and sells electric vehicles and energy generation and storage systems ..."

Statements 12-14 assert that Musk uses Twitter. Good thing no one else like the President of the USA does this." Fine, it is laying out how Musk communicates.

Statement 15 describes how 'short' sellers operate. In "16. ... Tesla has been unfairly targeted by short sellers ..."

Statement 17-18 says Musk met with Saudi Investment Fund. Now we get to "19. ... he assumed the the lead Fund representative was proposing a "standard" going-private transaction ..." Now even the government states Musk had 'assumed' which is a far from a deliberate act to mislead others. Restating the government claim, "20-22" are more details about Musk's understanding or misunderstanding. Again, the government provides a step-by-step list of what would be required.

Statements 23-59 shows Musk learning how going private is handled, a painful lesson. But there is a big gap between venial and accidental. Then "60. On the next trading day ..." again the stock gamblers were playing.

Statements 61-67 more on the education of Musk. Then we go full circle to:

"Musk Knew or Was Reckless in Not Knowing ..."​

Again, the government eviscerates their claim by "Not Knowing."

Statements 68-74 again claims facts not in evidence, the knowledge Musk had about what it takes to go from a public to a private corporation. He knew the advantages of stability to the SpaceX stock prices versus the wide spread, baseless speculations of financial 'news.'

Statements 75-77 restates the stock gamblers went for a ride.

It ends with the "CLAIM FOR RELIEF" which for completeness are:

I. Finding that Defendant violated the provisions of the federal securities laws as alleged herein;

To be determined at trial. There is a open question of intent versus ignorance.

II. Permanently restraining and enjoining Defendant from, directly or indirectly, engaging in conduct in violation of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5];

Citing the statute, kinda redundant.

III. Ordering Defendant to disgorge, with prejudgment interest, any ill-gotten gains received as a result of the violations alleged herein;

Facts not detailed in the allegations. Had Musk sold or bought stock at the time, game, set, point but I didn't find Musk had made any gains in the allegations. Can you find any?

IV. Ordering Defendant to pay civil penalties pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)];

Pay the fine after adjudication.

V. Ordering that Defendant be prohibited from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C.
§ 78l] or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]; and

This is a sensitive point because Musk is the chief engineer. Loss of his engineering expertise would be the SEC fatally shutting down Tesla.

VI. Granting such other and further relief as this Court may deem just, equitable, or necessary.

Pointing a finger and saying TISK TISK TISK.​

Bob Wilson

ps. I hope @hill gets a chance to review.

 

Back in June they said: "Tesla stock is still about 26 percent below its all-time high of $389.61 last year, and the company added two of its top energy executives — Arch Padmanabhan and Bob Rudd — to a growing list of 10 other departures amid a major staff reorganization at the company."
-CNBC

307.52 USD −2.06 (0.67%)
Closed: Sep 28, 4:55 AM EDT

Pre-market 276.50 −31.02 (10.09%) <<<

Yikes. I'll never recoup that (now) $15K loss.

 

that's why i'm in cd's.

 

Shorts may serve a purpose, but the shorters may not be subject to the same level of regulation as the owners.

If an owner does something dishonestly to increase the stock price, and sells at the high(a pump and dump), they are subject to fraud charges from the SEC. Is a shorter that does something similar at risk to such consequences?

 

He's by no means perfect, but as a person we should weigh him by the sum total of his actions which so far look pretty darn good.

No one should be above the law. If he is found to have violated SEC statutes, he should be penalized in a manner consistent with established enforcement. That said, in the past, the SEC has typically settled for substantially less than their initial claims for relief.

 

it's part of the process. whatever brain mechanism makes a visionary, it also manifests other 'anti social' behavior.
name me a genius who didn't have issues.

 

bisco

 

i knew you were going to say that, but look at your avatar, 'nuff said.

 

What's wrong with my avatar??? It's the first ship to Mars.

And what is that thing in the back of your Tesla??!

Holy smoke! Tesla is currently down 13%!? Now I am minus $17,000.

Tesla shares plunge as Wall Street throws in towel, saying Musk departure could cost stock $130.
--CNBC

And I was looking forward to getting a ticket on that first MARS flight!

 

Damn.

263.44 USD −44.08 (14.34%)
Sep 28, 3:25 PM EDT

Down 14%? I'm about ready to take a long walk.... off a short pier!

 

Odd, I get happy when there is a sale.