Posted on 09/29/2018 3:14:13 PM PDT by jazusamo
Tesla and SpaceX CEO Elon Musk has reportedly reached a settlement with the Securities and Exchange Commission after his abandoned attempt to the company private.
As a result of the settlement, which is still subject to court approval, Musk will have to step down from his role as chairman for at least three years and pay a civil penalty of $20 million, CNBC reported Saturday. Tesla will also have to pay a $20 million if the settlement is approved.
DEVELOPING
This was a slap on the wrist.
Because saying that he was taking the company private affected the stock price.
Officers of public companies have to be careful about what they say.
Very bright people as a group, have folks on the cusp of not being able to cope socially. Mush may still be a real whiz, but that doesn’t mean he’ll be a whiz at ever aspect of life.
If you look at what he has accomplished, it’s pretty amazing.
Thanks
“This was a slap on the wrist”
Yep had the deal been he had to step away from the company in all capacities it might have meant something.
Yes the SEC could have pretty much thrown him in the pokey. I got a communica from my "Auto Gnome" a couple of weeks ago when the SEC decided to get involved and it started off w/ "Rutt-Roh", many of the engineering types have business classes if not masters in it, as well as they get securities, security law side of things, and proprietary programs as they run tight ships these days, gone are the loose lips I am working on xyz for year 2025 bla bla bla, and all the cars are cammo'd. What Elon did was so against all of the above. He is lucky he doesn't have a new room Mate..... Ben, Ben Dover...
DeLorean’s entire production run was around 9,000 cars.
Tesla has produced over 300,000 cars and is still going.
I knew people with DeLoreans. They weren’t their daily driver cars. More like the sports car you took out on weekends.
I know people with Teslas and by contrast they drive them every day. Two are 2014 Model S Teslas and if there was any problem with them they would know by now. They love these cars.
If there had been criminal charges filed, THAT would have meant something.
“Because saying that he was taking the company private affected the stock price”
More so for $420 a share. It was a vindictive move to financially destroy the large hedge funds shorting the stock as the TESLA financials were not adding up. I believe these hedge funds will be coming after Elon / Tesla in civil court for a lot more than the peanuts that the Feds are.
300,000 subsidize cars.
Q: Were DeLorean’s cars subsidized by federal taxpayers? Just curious.
I think the worst problem was the claim of “funding secured” for going private. Claiming such a thing when in his position must be verifiable and in writing when you announce as it can (and did, in this case) affect the stock price.
Often, days are spent in advance before such announcements. This is to make sure all legal requirements are covered. Then the announcement is usually read a press conference to ensure no mistaken words are said.
https://subsidytracker.goodjobsfirst.org/top-100-parents
And Foxconn which isn’t even an American company gets more subsidies than Tesla.
I read somewhere that he had 45 days to step down.
“and pay a civil penalty of $20 million”
And every penny should be paid to the stock holders who lost money. Instead it will go in governments pockets. In Obama’s time it all went to Democrat groups.
Hey Moonman62, do you have a handle on the expected life, replacement cost and warranty on Tesla batteries?
Thanks in advance.
Hey Moonman62, do you have a handle on the expected life, replacement cost and warranty on Tesla batteries?
Thanks in advance.
Musk has been taking a lot of heat over the Model 3 production problems. And plenty of that heat comes from the investment world, which is what he gets for being a public company.
I got the impression that the ‘going private’ remark was Musk spouting off over all the flak he was getting. If he went private then he wouldn’t have to pay attention to any of it.
I don’t think that the SEC or anyone else has seen any evidence that he profited from the stock spiking. But he’s not supposed to make statements like that and they can fine him for doing it.
Of course I usually enjoy seeing shorts get clobbered so I’m going to cut him some slack.
Yeah, good example...
He was royally shafted though.
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