They want him barred from being an officer of a public company.
Lets lance this festering boil properly, get it over with and move on.
If the SEC succeeds and Elon is banned as a public company official that will definitely prompt Tesla to go private.
'Cos their jurisdiction ends as soon as it does.
If they don't succeed then its business as usual - so either way its dealt with.
I have sent the following email to the Chairman of the SEC and also via the SEC's complaints page. I urge everyone to write and complain.
I am appalled that the SEC would attempt to prevent Elon Musk from running any public company as punishment for his tweet about taking Tesla private. Mr. Musk has led Tesla to accelerate greatly the changes needed in the world to combat climate change. Tesla's car designs have literally forced the world's car companies to develop electric vehicles a lot sooner than they would have on their own. Tesla's offerings in terms of solar electric and battery backup have already helped enormously in places like Australia and Puerto Rico as well in homes across America.
I can imagine why a fine for his tweet might be called for, but to attempt to prevent him from running any public company is, in my view, an egregious and wrong-headed use of the SEC's power. To forcibly cause him to removed as CEO of Tesla will hurt Tesla shareholders much more than his tweet did. By doing this you are creating a bigger problem both in the near and long term than his tweet ever did, thereby hurting the investors and customers of Tesla hundreds of times more than he did.
I urge the SEC to reconsider this attempt to harm probably the person and the company who are doing the most to accelerate the change to a future of sustainable energy.
James G. Mitchell, PhD
Take private at a discount looks like a possibility. Too bad for the small investors that might not be able to participate.
Ouch!! Just ouch.
It is truly a shame that Elon Musk, as a very intelligent and well meaning person, put himself and his company in such jeopardy. I don't think the SEC had much choice in the matter. Elon is a high profile leader and he clearly violated SEC policy...intentionally or un-intentionally, is does't really matter. Let's just pray that Tesla (and Elon) can get past this and move forward.
The Chinese and Germans must be celebrating...what SEC has done is road-blocked an outstanding innovator. The Chinese are busy stealing american IPs, Europeans are going after american companies like Apple, Google, and the SEC is assaulting from within. We are under attach from 360.
The SEC is treating him like Elizabeth Holmes of Theranos.
It will take a while to sort this out in the courts and negotiations. Maybe he can stay at the helm and avoid anything beyond fines.
If he is not the CEO it'll be like Jobs leaving Apple. They seemed fine for a while there, but that company succeeded because of the visionary CEO.
Now, if Elon is out Tesla will have a hard time selling cars. The company will certainly loose its sex appeal and drive/innovation.
If Tesla fails the EV industry will fail.
@sosmerc, intentionally or unintentionally does matter. SEC lawyers are claiming scientar - that will be a key point, and hard to prove.
@rsrivast - correct, and this is where any letter to the SEC should focus. If they bring down probably the greatest American innovator in 50 years over a misleading tweet, they will live in infamy.
@gadfly - shut up.
This will hurt the head of SEC. Time for change.
What we see is the downside of a cult of personality. When someone is lofted to such a high status, it never ends well.
Maybe the board of directors will man-up and do their job.
I agree with greg. Elon could take Tesla private at much lower cost this time around. Shareholders would lose and they can't even sue SEC for manipulation.
Hi All: Please read the SEC complaint at Teslarati:https://www.teslarati.com/tesla-ceo-elon-musk-sued-sec-alleged-false-mis...
I seems the SEC has interviewed various relevant parties and it seems pretty clear that Elon was in clear violation of SEC rules. Keep in mind that many short sellers could have lost substantial money due to his tweet. I am NO fan of shortsellers (short seliling should be banned) but current SEC rules protect them from this kind of tweet/announcement. IF the allegations in the complaint are true, then i have lost faith in Elon. He made a much bigger mistake than i had previously thought. I wont be surprised if the board asks for his resignation.
AND, i think Tesla the company can do fine without Elon, and wont necessarily go private or get bought by Apple.
Just my 2 cents. Please feel free to 'correct' me if you disagree.
The main point i want to make is to read the actual SEC complaint, instead of relying on some secondary mainstream media source. then make up your mind about things.
I view is as frivolous as the bogus accusations against Kavanuagh (to whit, the primary accuser had claimed a fear of flying to avoid going to Washington, turns out she'd flown to far destinations multiple times - she lied to manipulate, case closed).
The suit against Tesla and Musk is frivolous and brought by short sellers because the news of the deal that was being contemplated would have taken the company private (which I think would be a good idea to avoid the daily bullshit in media). My understanding is that while it was to be taken private, people would still be able to own shares, but the trading was to be limited to 6 month terms.
Its a tactic to abuse the courts to tank the stock so the shorts can make money - they are the ones that the SEC should be investigating. They attempt to manipulate the stock daily.
Elon never claimed that he was taking Tesla private, but he was thinking of doing so.
Also no matter the details, this was 100% dependent on share holder vote.
short seller jumping the gun, assuming that tesla was going private (he never said so) and that share holder would approve, they did not. is not elon fault. they made assumptions .
Also, even so no price was locked, the idea of taking Tesla private WAS discussed with Saudi investors when they visited in july..
Elon from those conversation did the math. his 20+% share + investor going private would secure a deal. And a deal could only be made at a premium. Elon expect/ed a ~20% premium to consider this.
Now if the tweet read " Tesla is going private at $420 a share, shareholder have approved" then the SEC got a point.
But from what Elon tweeted, its going to be very hard for the SEC to show market manipulation VS true information sharing.
Yes he was thinking of taking Tesla private
Yes after talking with recent large investor he believed funding is secured
Yes the whole deal was ultimately to be decided by shareholders
What short seller assumed should not be the SEC problem.
When anyone read the tweet it was clear it was not a done deal and shareholder would never go for it.
I haven't read the complaint yet but intend to, and think you guys should before you put yourselves too far out on a limb. The facts may or may not support your theses. Check first before playing semantics.
@rsrivast Good point about SEC is assaulting a great American company for no good reason. With an American agency like that who needs Russia or China.
carlk | August 7, 2018
"Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote."
Sounds like a done deal. When it reopens it will be at around 420. Shorts can't say Elon did not warn you.
carlk | August 7, 2018
You will be able to convert your shares to the privately held company and having a chance to sell your shares every six month.
carlk | August 7, 2018
Muddy wa us
Elon in his letter to Tesla employees said the private company will be set up just like SpaceX. Shareholders will have a chance to trade their stocks once every six months. It will still have some kind of liquidity.
carlk | August 9, 2018
I'm pretty confident it will end up just like what Elon has said.
carlk | August 11, 2018
And like any start up companies investors who put money in is giving shares of the company. In this case would be share bought back from those who want to cash out. Got it CFO of start up companies?
and this is really one of Creepy Carlk’s best:
carlk | August 18, 2018
Yes BS like Elon did not tell the truth.
carlk | August 18, 2018
What Elon described in the communication is clearly that everything is there and secure if they proceed. If that is not true the Saudis sure would have issued denier or verification already. From Elon's latest interview it seems it's a definite go at this moment.
carlk | August 25, 2018
I still think going private is good for Tesla.
A lot of armchair lawyers here who think they can evaluate this case better than the parties involved. Pretty much par for the course with social media.
If the board stands for anything other than being Musk's yesmen they should start an executive search, stat. They should have done this a long time ago (probably around the time he blew up on the investor call, the first hard red-flag).
@saxxon, Quote: “I view is as frivolous as the bogus accusations against Kavanuagh (to whit, the primary accuser had claimed a fear of flying to avoid going to Washington, turns out she'd flown to far destinations multiple times - she lied to manipulate, case closed).”
Oh really? One lie, and you’re going to claim “case closed”? Kavanaugh told the committee all the drinking was legal because the drinking age was 18, and they were over 18. But the drinking age had been raised to 21 in that state a year earlier when he was 17. That would have been pretty disappointing to 17 year old high school kids looking forward to turning 18 and drinking, so it’s pretty likely he knew that. So he provably lied under oath to the Senate committee too. So case closed now too? It’s 1 to 1. Which way does that go? Neither party is right, and it breaks a hole in the space/time continuum? This can go on and on and doesn’t relate to Musk and the SEC.
@sschaem, Arrrgh! No! You, like so many others continue to miss the point. It’s two separate statements, and you continue to only focus on the one that said “considering”. There is NO problem with that one. The other statement said “funding secured”. That is an absolute past tense statement that has no room for conditional or contingencies or possibilities. THAT statement is THE problem.
Sorry @Wilbur but your "reading" is not correct. But I'm glad that you went to the source material.
The SEC's claims don't match the duties of Elon Musk.
Elon isn't required to paper an offer from the Saudis before anything else happens.
And the complaint omits Elon's perfect defense: namely that the offer from the Saudis was real because they ultimately not only secured funds but put an offer before the board only a few days later.
Thanks for the quotes. I don't like kicking a man when he's down, but I do when he doesn't realize he's beaten and refuses to learn a lesson. Reading carlk's shockingly naive statements in retrospect is, frankly, a delight. Legitimately enjoyable.
In the past couple of months Musk has completely imploded on twitter. This SEC investigation is a superb litmus test on who here has completely and irrevocably lost the plot. Anybody still defending what he did as anything other than profound foolishness, who doesn't appreciate that the SEC has a rock solid case against him and will win in court, is clearly too far gone.
That Musk was given an offer by the SEC to not even have to admit guilt but was still too prideful to agree to it shows that he has not learned his lesson. His ego pays great dividends at times. It makes him think something is possible when others don't, and it's worked well for him. This is one of those times that ego is going to sink him hard.
" The other statement said “funding secured”. That is an absolute past tense statement that has no room for conditional or contingencies or possibilities. THAT statement is THE problem."
Precisely. Some of you people are so dense it beggars belief. The SEC is going to steamroll him on this.
@Shock, I see why people don't like you on here. It would appear that your ego is bigger than anything you accuse others of. Interesting that you know the future outcome of this lawsuit.. Perhaps you should exit this forum and use your predictive abilities to make a great fortune in this world? That's what I would do if I knew it all!
Careful to not confuse the SEC with trump appointed Jay Clayton and the coordinated attack on clean energy, GHG pollution control, dismantling of the EPA, etc. Jay pulled his trigger too early. Rest assured, this is just a bump in the road.
I suppose Musk still has some time to contemplate that offer from the SEC. Trump changes his mind all the time, why can't Elon? Frankly, I hope he reconsiders and takes advantage of any chance to stick with the company, even if not the CEO for awhile.
Elon can become a consultant to the company with wide ranging responsibilities.
He really stepped into it with the SEC. I guess the words "Funding secured" tripped the wire.
Hard to understand how he could be so ill-advised. Could be exhaustion at work.
Maybe he'll be on the moon digging tunnels by the time the case gets to court. :-))
Right! Elon Musk, Consultant to Tesla Board, dotted line to Straubel.
If the SEC strikes Elon down, he will become more powerful than they could ever imagine.
When only considering taking a company private, by implication, or by simple cause & effect, any dedicated funding towards that end is equally tentative. When funding comes with documents signed to take a company private, going private is being more than just considered. You can't take either sentence in the tweet out of context, and it's pretty odd that so many people keep trying to.
I think Elon's position should be put up to a vote by the stockholders. My guess the folks that actually own Tesla will confirm his position or vote him back in if SEC removes him somehow.
What is rather strange about this whole thing is TSLA now falls on the news. Usually it's the other way around. Buy the rumor, sell the news is the old saying. The same is true inversely. I was a bit surprised that TSLA didn't fall like a rock when Musk made that ridiculous tweet in the first place. Then again when the SEC said they were going to investigate. It should have been slam dunk obvious to anyone with half a brain that you can't publicly make declarations the way Musk did, especially a CEO saying it.
But then, I've been saying for quite some time that there is no way TSLA warrants a $50B mkt cap. The only things keeping TSLA as high as it has been is Musk's constant pumps and the suckers who have continued to fall for it. With Musk TSLA pumping shut down, TSLA will certainly continue to fall. As I've said, it would still be overvalued with a $10B mkt cap (~$50).
I can’t wait to see how this shakes out over the next few years. Some of us are going to look pretty dumb.
SO, is that the same as saying I have a chance going to heaven if I believe, otherwise I'm going to hell?
Faith only rewards when you're lucky. I'll take wisdom over faith any day!
It’s an ingenious ploy by the SEC to give Elon some much-needed rest, so he can come back even stronger
Dow Jones New wires:
"Tesla Inc. CEO Elon Musk believes he had a verbal agreement in place with Saudi Arabia's sovereign-wealth fund to help finance a plan to take the auto maker private, according to a person familiar with the matter, a contention that could preview how he will fight regulators' accusation that he misled shareholders. "
"Mr. Musk believes the SEC's effort is flawed in assuming that a written agreement and fixed price were necessary for a deal, the person said. Mr. Musk also thinks regulators aren't taking into account that Middle Eastern businesses routinely operate using verbal agreements in principle, the person said. "
" In addition, Mr. Musk has told people that he could have led a go-private transaction using his own stake in SpaceX, if major Tesla investors were on board. SpaceX is the privately held aerospace firm that Mr. Musk controls and is valued at tens of billions of dollars.
Those descriptions of Mr. Musk's thinking are the most detailed yet following the SEC lawsuit."
Thursday's dog and pony show by the SEC is the most blatant example of how they are absolutely owned by Wall Street. The complaint against Musk read just exactly like it would if the the shorts had written themselves. In fact, I believe they (effectively) did write it. I found at least a couple of things of interest in the SEC's presentation: 1) Why now?. Why 2 to 3 business days before Tesla's announcement of a mind-blowing quarter in terms of cars manufactured and cars delivered (sold). 2) Why did they list 6-7 names of SEC employees who reportedly "investigated" Musk and came up with the final charges? What was there to investigate? All pertinent facts (i.e., Musk's tweets) we're already in the public domain. The whole SEC charade was designed to inflict the maximum damage to Musk and to Tesla's shareholders for the benefit of those who want to destroy Tesla. It looks as though Musk will be going to court with this. I hope he considers a counter-suit against the SEC.
@jacklondon413 All good points. Not to mention you need to put it into the context of "Am considering". No one would sign financing documents when it's still in the discussion stage.
@hock1 True. Can shareholders file class action lawsuit against SEC?
[Thursday's dog and pony show by the SEC is the most blatant example of how they are absolutely owned by Wall Street.]
The talking points of Tesla fanbois are a blatant example of how they are blinded by their adulation to the point of constantly reaching for conspiracy theories to protect their sunk investment in hero-worship (and TSLA shares).
With regard to the alleged proposed settlement that Musk rejected: it seems likely to me that Musk may have been open to having his role on the Board reduced (and a fine), but adding two "strangers" to the Board was an action that should be forced by stockholders, if at all, and not by a regulatory body. The SEC does not own stock in the company. That represents the SEC assuming powers that only major stockholders would otherwise have, and that doesn't seem right. This may have been Musk's thinking.
This sounds like history repeating itself; big 3 and establishment forcing out newcomer that doesn’t fall in line. The stories of Tucker ; and DeLorean come to mind
“Tesla believers have nobody to blame but themselves for a Tesla stock bubble they created. But I don’t have a dog in this fight the way some of my short-seller readers do. I don’t need the company to fail to feel vindicated. I will feel equally vindicated and much happier if Mr. Musk can straighten up and generate authentic profits based on the market that clearly exists for electric cars among swells and enthusiasts.”
Time to Put Down the Bong, Elon
Good idea Mr. Mitchell, I will also write the SEC. I took delivery of a Model 3 Thursday, it is the first car I have been excited to buy in 30 years. I studied electronics and have been a mechanic for over 40 years; I'm so tired of boring and polluting gas/diesel momma's boy vehicles. Stay strong Elon and Tesla, thank you for your hard work.
Musk will step down as Tesla’s Chairman and be replaced by an independent Chairman. Musk will be ineligible to be re-elected Chairman for three years;
Tesla will appoint a total of two new independent directors to its board;
Tesla will establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications;
Musk and Tesla will each pay a separate $20 million penalty. The $40 million in penalties will be distributed to harmed investors under a court-approved process.
Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations.
I don't want to dialogue with any more trolls but as a goodbye token I have a question for "Shock:" What happened to your all knowing predictions? EM no longer CEO for sure? See how listening to people like you is totally worthless? Maybe now you could avoid this forum? There are plenty of modest and intelligent people on this forum, and that's why I enjoy reading. You're free to go preach your nonsense arrogance elsewhere. Peace!
Over n Out
Be back in 3 years
@babyjocko - I too take wisdom over faith.