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SEC Sends Subpoena To Tesla In Probe Over Musk's Take-Private Tweets (bloomberg.com)
The U.S. Securities and Exchange Commission sent Tesla a subpoena regarding Elon Musk's effort to take the company private, "indicating the regulatory scrutiny of his statements have reached a more serious stage," reports Bloomberg. Last week, Musk tweeted he was considering taking Tesla off the market and had "funding secured" for the deal. From the report: Musk exposed himself to legal risk by tweeting Aug. 7 that he had the funding for a buyout. Almost a week later, the chief executive officer said the basis for his statement was conversations with Saudi Arabia's Public Investment Fund, which first expressed interest in helping take the company private in early 2017. Tesla's board has since clarified that it hasn't received a formal proposal from Musk, who's also chairman, nor has it concluded whether going private would be advisable or feasible. Tesla may face potential regulatory challenges beyond the SEC investigation. The company probably will need approval of U.S. national security officials if Saudi Arabia finances the effort to take the company private, and President Donald Trump's administration has been stepping up scrutiny of foreign investment in American technology.
Being asked for information when the public is wringing their hands, as you are, is not "serious trouble." It is just the expected next step, no matter what the legalities are.
If the media is fretting for a whole fucking week, yeah, the related regulatory agency is going to send some subpoenas. That means a request for information. That is all it means.
Also, you used the phrase "back-bencher," but you don't seem to comprehend the meaning. It means you. Not just them.
There are so many different theories of what a CEO's behavior should be, it is pretty funny when critics talk about their own preference as if it might be the One True Way. It should be clear that there isn't any such thing.
In other years, or with CEOs having a different name, it is often stated casually that part of their job is to spin everything that happens in the light that best boosts the stock price. And then if his name is Elon Musk, the same people freak out because he didn't file an 8-K, even though the rules are really clear and explicit that an 8-K filing would be needed after the company consummated a deal to privatize. That's how far the critics are from reality, generally. It is highly comical.
Which is it, do you want CEOs to do nothing, or to do something? The stock price went up after his comments, because people believed them, and now it is a week later and we know that a deal is in fact being negotiated. That's verified. People want to chase him around with handcuffs over their narrow parsing of the word "secured," even though the standard for truth is not that every single possible dictionary definition of the word are all simultaneously true. In fact, if any of the common meanings of the word are true, then it is obviously true. People don't even remember the difference between truth and lies while they're chasing him with their imaginary handcuffs. And they certainly don't remember it while they're bloviating about how much they know about the job of a CEO. They don't even know that most companies would prefer to have a controversial CEO who can keep their company in the news! And if the public thinks he's some brilliant engineer, there is almost no way that it hurts the company; even all the nonsense of people chasing him with their imaginary handcuffs, it benefits Tesla immensely. They're a bigger part of the public mindspace than BMW or Mercedes Benz! Not only has he made his tiny car company the absolute center of public thought about his industry, he even has them associated with the engineering of fuckin' space ships! He's like, knocking it out of the park with a Galaxy-class performance as CEO, and the supposed "nerds" on slashdot are too busy sucking their own herpaderp to notice the difference between "I don't like him" and "he's doing a bad job."
A subpoena is not "asking". It is demanding, and to get one you have to convince a judge that there is probable cause. You can consider it a search warrant, except for documents, testimony and information instead of physical evidence.
You are welcome on my lawn.
I'm not one to say, "I told you so", but if you look at the comments from when this story first came out, you will see I commented that his obvious attempt to manipulate stock price could get him in serious trouble with the SEC. A long thread of Musk fans and the Anonymous Coward telling me that was nonsense and nothing Musk did was improper followed. Matter of fact, the thread is still active with back-benchers arguing with me about how Musk doesn't need to do any of this because he's a billionaire and really doesn't care about the stock price of Tesla.
Well...
https://youtu.be/9AajslFuPro
Here is the thread. I told you so.
https://slashdot.org/comments....
I'm so impressed by your insight. Can I have your autograph? Dumbass. If you need to say, "I told you so," you are just some dip shit. Everyone is right some time in their life. Apparently, it's so uncommon of you that you have to declare it.
Well, I think in the end, this is a cultural war between those in the wealth creation business (Elon Musk/Tesla) and those in the wealth transfer business (Wall Street). As far as Wall Street is concerned, the public CEO is there to serve them. When a public CEO does not act accordingly, the entire industry goes out for blood.
I have had Wall Street types find out I own a Tesla and go into some kind of rant of why the company is doomed, that "everyone I talk to is shorting them", and all their cars catch on fire. That is not normal "car" talk. That is crazy "they faked the moon landings" type shit. It is like the entire industry is acting like some kind of cult because a public CEO had the gall to stand up to them.
That is why I think Tesla should go private. Not because Elon Musk is crazy, but because Wall Street is. . .
Sdelat' Ameriku velikoy Snova!
Well, sort of - but you went to the stock market to *get other people's money*, it's not at all unreasonable to expect them to have some say in how you conduct yourself.
If you want to retain full control, as you say, don't take it public. You can't have your cake and eat it, too.
losing billions to sell thousands...
Yes, and $4B x 4 is $12B/year. So they are losing billion to sell BILLIONS (not "thousands").
Revenue growth is up - and so are costs, and the losses.
Yes, sacrificing profitability to increase market share might sound crazy, but it is business as usual in . . . business. For Tesla, it is a small price to pay to start dominating an entire segment of the car market. . .>, and its marketcap would tend to agree. . .
Sdelat' Ameriku velikoy Snova!