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i have to say, after watching the whole 2.5hr interview with joe rogan, i had a lot more respect for elon musk. the brief pot smoking part was what made the news, but is no big deal.
I agree. I watched the entire interview as well. You should read the book titled "Elon Musk: Tesla, SpaceX and the Quest for a Fantastic Future." He had a very difficult upbringing and IMO it makes his accomplishments all the more impressive. I plowed through that book on a recent vacation and highly recommend it.
This isn't a necessarily question of innocent until proven guilty or anything like that. Some things arguably just speak for themselves, and this is probably one. Musk's issue is that he tweeted what on any reasonable analysis seems to be misleading price-sensitive information, reportedly without the approval of his board. My own view is he isn't going to win this one.
He apparently wanted to impress his girlfriend with the $420 stock price. This, from a guy who already makes what is arguably the most advanced pure-electric vehicles in the world....and he tries to flatter people with a stock price. No wonder he gets into trouble.
CHICAGO, IL - JUNE 14: Chicago Engineer and tech entrepreneur Elon Musk of The Boring Company talks about constructing a high speed transit tunnel at Block 37 during a news conference on June 14, 2018 in Chicago, Illinois. Musk said he could create a 16-passenger vehicle to operate on a high-speed rail system that could get travelers to and from downtown Chicago and O'hare International Airport under twenty minutes, at speeds of over 100 miles per hour. (Photo by Joshua Lott/Getty Images)MoreIt turns out that the price Elon Musk came up with to take Tesla Inc. private really was about weed, and that the embattled chief executive officer tweeted the figure to impress his girlfriend, the rapper Grimes.
The U.S. Securities and Exchange Commission made the connection clear at a Thursday press conference after announcing that it had sued Musk for falsely asserting that he had secured funding to take the company private at $420 a share.
“While leading Tesla’s investors to believe he had a firm offer in hand, we allege that Musk had arrived at the price of $420 by assuming 20 percent premium over Tesla’s then existing share price then rounding up to $420 because of the significance of that number in marijuana culture and his belief that his girlfriend would be amused by it,” Steven Peikin, co-director of the SEC’s enforcement division said.
Without disputing the reference to cannabis, Musk was quick to criticize the SEC’s decision to bring an enforcement action.
“This unjustified action by the SEC leaves me deeply saddened and disappointed,” Musk said in an emailed statement. “I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”
i have a feeling once the law suit gets going more dirt will start to surface and it's gonna make musk look really bad, he should have taken the slap on the wrist but he chose to take it up the ***. don't do drugs folks.
he chose to take it up the ***. don't do drugs folks.
He admits to taking Ambien, but that is a legal-prescription sleep-aid. You can correct me if I'm wrong, but there's no evidence I know of that he does any illegal substance-abuse.
He admits to taking Ambien, but that is a legal-prescription sleep-aid. You can correct me if I'm wrong, but there's no evidence I know of that he does any illegal substance-abuse.
there was no evidence because no one was looking but now he gave the feds a reason to dig, people will testify and dirt will surface. he also has a lot of enemies tesla is the most shorted stock in the world and all those shorts want him to go down.
here is a video of a very good analysis of what's going on up to this point.
Actually, Tesla is no longer the most shorted stock in the world. That title goes to Apple and Amazons of late. And what do drugs have to do with the investigation. Elon has always been one to tweet things that maybe shouldn't be tweeted, like car features, announcements of details etc. I don't think he did anything wrong, but I enjoyed the dip in the stock price today, I added to my position.
It's serious. The SEC has gone after Musk personally, not Tesla, and they are going after Musk hard - something that may in part be because Musk also reportedly turned down an offer to settle, which is likely to prove to be another error of judgment...
The case against him isn't exactly subtle or nuanced - it's basically saying his tweet contained price-sensitive information he knew to be false or misleading. At face value it doesn't look like a case that is likely to be difficult to prove (reportedly he neither had funding secured nor had he cleared the tweet with Tesla's board, and it's not going to take much in the way of discovery to get to the bottom of this).
This could be a big problem for Tesla. It's my understanding a company can't raise money while under SEC investigation and Tesla has debt payments coming due. There could be some very serious worst-case scenarios that result from this.
He did make the twitter post, did he not? Only to quick backtrack, no?
Originally Posted by RXSF
so when financial analysts keep releasing headline news about how Tesla is in trouble, that isn't stock manipulation?
No a ceo's post carries much much more weight since he or she has insider info. An analyst's article is just opinion and any intelligent person should know to do their own due dilligence.
Not getting into the Trump thing, although you are right, but as this relates to Musk it's not a witch hunt. Like it or not, public companies can't behave as if they were private companies. The SEC action is an enforcement action responding to frankly idiotic behavior - his ill-judged dissemination of what seems to be bogus information with clear potential to impact stock price and investors. There is fault on Musk for his continued poor judgment and fault on Tesla's board for their failure to reign in Musk's propensity to shoot from the hip and their failure to keep his Twitter ramblings under control. Let's not forget he's also being sued for accusing, again via Twitter, a cave rescuer who upset him of being a pedophile.
ah, the haters and lovers are out in full swing here.
what musk did clearly wasn't proper but i don't think his intent was to manipulate the stock. the sec doesn't like any "wild" people and will do anything to keep an 'established order' (meaning good old boys sharing insider info in private clubs or on the golf course ).
i believe this will still get settled with a fine and no admission of wrongdoing.
09-28-18, 10:54 AM
