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Elon Musk Pulled Out of Settlement With SEC At Last Minute (cnbc.com)
Sources have shared some new details with CNBC relating to the recent SEC charges against Tesla CEO Elon Musk. Yesterday, U.S. securities regulators sued Musk for allegedly making false statements related to his abandoned efforts to take Tesla Motors private. Now, according to CNBC, Tesla and the SEC were close to a no-guilt settlement but Elon Musk pulled out at the last minute. From the report: Under the deal, Musk and Tesla would have had to pay a nominal fine, and the CEO would not have had to admit any guilt, the sources said. However, the settlement would have barred Musk as chairman for two years and would require Tesla to appoint two new independent directors, CNBC's David Faber, citing sources. Musk refused to sign the deal because he felt that by settling he would not be truthful to himself, and he wouldn't have been able to live with the idea that he agreed to accept a settlement and any blemish associated with that, the sources said. Musk called the SEC's allegations "unjustified" and that he acted in the best interests of investors. "Tesla and the board of directors are fully confident in Elon, his integrity, and his leadership of the company, which has resulted in the most successful U.S. auto company in over a century. Our focus remains on the continued ramp of Model 3 production and delivering for our customers, shareholders and employees," said Tesla's board of directors in a statement.
get out of the way or die
funny thing is, thatâ(TM)s what those of us who shorted Tesla were betting on. :)
I disagree. Board members can be beyond villainous, well into truly evil territory.
Tesla will be better off in the long term without more hostile board members, even if it means being without Elon. The cult of personality is an intoxicating thing, but there are a lot of good people at Tesla and elsewhere who want it to succeed. Tesla can succeed without Elon if they must, but I wouldn't count him out just yet.
For reference, see the history of the Aptera electric vehicle. It had great potential, but the appointed board members killed it.
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." - H. G. Wells
He committed fraud, black-letter regulation, that everybody and their dog knows about. I am not a business executive, I know all about it.
Really? You know all about it? Then by all means, tell us precisely who he was talking about when he said he had secured funding, and why you personally know (not believe, but know, the two are different) that it was a lie? Or really, go write an article on the subject and submit it to various news outlets, I'm sure someone will be happy to carry it.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Correct.
Elon defends himself and his company from the destructive action of short sellers and their negative publicity. Many of his long shareholders, including this one, applaud.
Trump's big business buddies all want Tesla and anything that reeks of environmental protection to die. "Ma business, ma profits, stop da Musk!" Ford redneck truck and Mustang sales will soar. Along with CO2 and global temperatures.
The SEC does the bidding of Trump's buddies and sues Elon.
Despite the outcome of this civil case, YOU have already found him guilty of committing fraud. The judge and jury are still out on that one.
If he's got nothing, he should have taken the deal.
If he's got nothing, the deal shouldn't have been offered. "A nominal fine and no admission of guilt" is not appropriate for inexcusable misconduct at this level.
The "short sellers" have no impact on the operations of Tesla. Tesla does not depend on its stock price in any way that was created by the "short sellers".
Actually, short sellers do make it harder to raise capital. Both through their actual selling (lower share price means having to issue more stock to raise the same amount of capital) and, more importantly, through incessant made-up rumors affecting both stock and bonds (with a higher interest rate for the latter).
Not all the rumors are false, of course, and some of the criticism is certainly justified, but there's a whole lot of completely made up stories out there, too. "Ooh, a parking lot full of newly produced Teslas, they are obviously having trouble selling them" while in reality there's a waiting list of a few hundred thousand, for example. "Working conditions are unsafe, there are no yellow lines because Elon doesn't like the color yellow", quickly debunked with an actual picture of the factory floor with lots of yellow lines everywhere. Those are just some of the more obvious ones, but there's plenty more. That constant stream of negativity, with every debunked story being quickly succeeded by another one, does take its toll on the company's image which for a publicly traded company directly affects operations.
I don't think Elon minds genuine criticism, or even people selling his stock short based on their honest judgement of his abitity to deliver. But people making millions by spreading false rumors, that's another matter entirely.
Except when the SEC and Musk/Tesla disagree on if the evidence exonerates him. They probably did provide the evidence and just disagree on what that means to the case.
The fact that the offered settlement is so far from what the SECs demands, suggests to me that the SEC isn't so sure about their case.
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