Elon Musk to resign and pay $20M

[skibob]

On the back of this gentle slap on the wrist, Tesla’s legal risks still remain elevated given the plethora of now potentially bolstered shareholder class actions and the criminal investigation by the DOJ (the SEC is one thing, the DOJ yet another). In the time since Elon's August 7 tweets, Tesla has faced an increased number of shareholder lawsuits alleging harm on the part of investors (both long and short by the way). The SEC charges will likely strengthen those legal arguments and private lawsuits.

Tesla will surely be impacted by the decreased investor confidence and find it more difficult to complete a multi-billion dollar capital raise given the added uncertainty. It surely will not be paying prime + 10bps or issuing stock at market price.

No one that I know has been short Tesla based solely or even in part on the SEC case. This has been merely a side show. The short thesis is pretty compelling as explained by those who do this for a living. Musk is an amazing stock promoter but a horrible CEO. This settlement forces him to be only a CEO.

I agree, FWIW. But the class action suits won't be settled for ~5 years and Tesla I am sure hopes to be in a much better position $$$ by then. Its probably a $100 to $200 million settlement IMHO. If Tesla is doing 40 billion in sales by then they'll blink, grunt, write the check, and move on.

 

[skibob]

The SEC has a mandate not to screw over the company, the market, or the shareholders. Guarantee you that he refused to settle and forced the SEC to sue so they would have to face the reality. 11% drop in one day. Now, do you REALLY want to ban me? He called their bluff.

He may be a loose cannon and an asshole, but this guy is crazy smart and filled with confidence.

I find the constant prognostications of Tesla's and Musks, demise to be comical. So:


PS: Stock at 304 this morning. IOW, its already recovered everything it lost and is headed up.

THis report:

https://www.marketwatch.com/story/h...se-deal-than-the-sec-first-offered-2018-10-02

Paints a less flattering picture of last weeks events. But I have a hard time believing it. Musk may be an egomaniac, but he is still a rational actor. He would not have rejected the SEC's offer unless he felt there was an avenue for a better settlement. Likewise, the SEC cannot and never will carelessly allow a stock to tank and investors to be hurt. It is literally their mandate to prevent this.

So, I doubt the details. But clearly everybody ultimately acted so as to prevent a spiral that would only hurt more investors than his original actions did.

 

[DanoT]

THis report:

https://www.marketwatch.com/story/h...se-deal-than-the-sec-first-offered-2018-10-02

Paints a less flattering picture of last weeks events. But I have a hard time believing it. Musk may be an egomaniac, but he is still a rational actor. He would not have rejected the SEC's offer unless he felt there was an avenue for a better settlement. Likewise, the SEC cannot and never will carelessly allow a stock to tank and investors to be hurt. It is literally their mandate to prevent this.

So, I doubt the details. But clearly everybody ultimately acted so as to prevent a spiral that would only hurt more investors than his original actions did.

From the article:
"Musk might be a genius when it come to electric cars and space travel, but he’s a little bit of a numbnut when it comes to dealing with the SEC,” Stanford Law School professor and former SEC commissioner Joseph Grundfest said in a weekend interview with the San Jose Mercury News.

Grundfest pretty much nailed it. Musk's attempt to use a made up story and stock manipulation to get back at short sellers of Tesla's stock was a foolish, arrogant act on his part and proof that even very smart people sometimes do very stupid things.

 

[oldschoolskier]

Something that has fallen by the wayside is how Tesla Grid System batteries are performing. In Australia they initially predicted poor or useless results, now that they are online they are surprising everyone.

I wouldn’t call Musk brilliant but I would call him driven and focused (to the point of obsessive) on ideas he thinks are brilliant, luckily he manages to surround himself with people who can help execute those ideas and has the resources to fund them.

Let’s just hope he doesn’t believe his own hype as this would be his demise and ultimate down fall.

 

[fatbob]

Musk livetweeting his mental breakdown at present

Elon Musk (@elonmusk) | Twitter

The latest Tweets from Elon Musk (@elonmusk): "And the rocket's red glare, the bombs bursting in air"

twitter.com

 

[LiquidFeet]

Oh my.

 

[cantunamunch]

Oh my.

Go free will go.

 

[neonorchid]

...What, trying to be like Tom Shadyac?

 

[Seldomski]

Wow, that's some twitter feed there.

Screenshot for posterity:

 

[skibob]

Wow, that's some twitter feed there.

Screenshot for posterity:

View attachment 101348

California = Legal Marijuana

 

[Ski&ride]

Why does the name Howard Hughes keep popping up in my head?

 

[neonorchid]

He claims his baby with Grimes is due Monday 5/4/20 -

"Jimmy Emmonstein
@O2SupremeVermin
·
7h

Replying to
@elonmusk
and
@Grimezsz
this is the best news I've heard so far. This means you're still together, despite speculation to contrary Maybe that's what this is about. I hope you fair well.

Elon Musk
@elonmusk
·
7h
Baby due on Monday"

_____________________________________

Is Grimes pregnant? Elon Musk’s girlfriend shares bizarre baby bump photo

The eccentric singer posted a bizarre photo on Instagram suggesting she’s expecting a baby.

pagesix.com

Never know what to believe, her eye surgery claim is beyond insane - https://www.college-optometrists.or...grimes-reveals-bizarre-eye-surgery-claim.html

 

[crgildart]

Why does the name Howard Hughes keep popping up in my head?

 

[neonorchid]

...will they name the next one X ΠA-11?

“Mom & baby all good,” Musk told his fans in a tweet, adding another one showing off a freshly swaddled “X Æ A-12” marked up with face tatoos. “Never too young for some ink,” he wrote:

Tesla in the Gong @TeslaGong


· 16h


https://twitter.com/TeslaGong/status/1257549595174830083

Replying to @elonmusk and 2 others

We really need to see picture of the baby !! Please do share.

Elon Musk

✔ @elonmusk










82.1K

1:59 AM - May 5, 2020

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[neonorchid]

 

[scott43]

They haven't made a penny yet..why would people abandon them now?

 

[cantunamunch]

They haven't made a penny yet..why would people abandon them now?

*has a strong suspicion cuarentaytres just made a Bitcoin joke*

 

[Tony Storaro]

What did they name their kid? Was it R2D2 or C3PO?

 

[scott43]

Every time I see a twenty-something dude in a Lambo I curmudgeonly whimper "friggin bitcoin..shudda bought..."

 

[neonorchid]

What did they name their kid? Was it R2D2 or C3PO?

Sounds about right, LOL, would love to see the look on the face of the substitute teacher doing role call and trying to make heads or tails of "X Æ A-12".