SEC sues Elon over privatization disclosure — UPDATE now settled

iChris93

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#2
I saw the NYTimes article. Rough seas ahead...
 

TheTony

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#3
I saw the NYTimes article. Rough seas ahead...
Agreed. It's important to note that Tesla is not named in this suit. However, it's undeniable that Elon as CEO has a clear effect on the stock price, for better or worse. So, while a company without him may do just fine in the long term, in the short term, it'd be a rough go of things, as many people share his vision and mission for the company. His departure would create uncertainty, especially as they're still working to scale and have multiple new product launches in progress.
 

iChris93

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#4
Agreed. It's important to note that Tesla is not named in this suit. However, it's undeniable that Elon as CEO has a clear effect on the stock price, for better or worse. So, while a company without him may do just fine in the long term, in the short term, it'd be a rough go of things, as many people share his vision and mission for the company. His departure would create uncertainty, especially as they're still working to scale and have multiple new product launches in progress.
It would also be incredibly painful for him. He did something stupid but I am not sure it is grounds for pulling a company he helped to build from him.
 
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NR4P

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#5
Its not unusual for a deal to be made in a case like this. Pay a big fine, compensate investors, some suspension maybe etc .

SEC doesn't want to destroy a company but has to act. And deals are better than trials .
 

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#6
I think in a suit like this they ask for the world (ie his dismissal and more) and this will drag on and end with a monetary settlement.
 

MelindaV

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#7
Tesla Daily is a great resource for $tsla info and his couple posts here are well worded and not over reactionary
 

breadfan35

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#8
Crazy situation, but Elon has himself to blame for this. As a fan of this overall mission and goals, there is no doubt he has been doing many questionable things of late. Hopefully this gets resolved in some way that keeps Elon at the helm of Tesla and he learns to settle down and continue focusing on changing the world, rather than all this other stuff.
 

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#9
Crazy situation, but Elon has himself to blame for this. As a fan of this overall mission and goals, there is no doubt he has been doing many questionable things of late. Hopefully this gets resolved in some way that keeps Elon at the helm of Tesla and he learns to settle down and continue focusing on changing the world, rather than all this other stuff.
Any other very public American figure who's questionable rants and antics remind you of Elon?
 
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#10
Part of me wants to defend Elon and another wants to see him step down as CEO. He’s been acting quite irrational lately and unfortunately there’s no sign of improvement (pedo comment part 2). All that innovation now threatened because of a few careless tweets resulting in billions of dollars gained or lost in TSLA stock. I don’t know how he could keep his position this time around. It seems like he did break some important rules and acted irresponsibly. All this time I thought he was making calculated moves while being completely aware of any implications for his actions.

I don’t believe Elon’s amazing track record will save him - as of today - when so many out there for years have perceived him as a fraud, and the tide hasn’t quite turned yet for the company as being proven and profitable. If the perception was overwhelmingly positive today, let’s say Elon had a perfect track record of meeting all self imposed deadlines and that Tesla has already been profitable for a couple of quarters, then I would tend to agree with Rob Maurer’s opinion, but that’s hardly the case.

Who would be best to take over as CEO? Maybe Gwynne Shotwell (Sarah Palin lookalike LOL) or JB Straubel. At least they would continue to follow Elon’s lead behind the scenes.
 

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#11
Innovation isn't threatened, the lawsuit is against Elon not Tesla. Elon is likely going to pay a fine, that does not translate to Tesla failing.

Also this settles the question whether SEC is trying to remove Elon as CEO:

 
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#12
Innovation isn't threatened, the lawsuit is against Elon not Tesla. Elon is likely going to pay a fine, that does not translate to Tesla failing.

Also this settles the question whether SEC is trying to remove Elon as CEO:

I sure hope you’re right. I based my opinions on Elon having to step down and a potential for his replacement to be a threat to innovation, that is if it ain’t Gwynne or JB who are innovators in their own right.
 

TheTony

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#13
Innovation isn't threatened, the lawsuit is against Elon not Tesla. Elon is likely going to pay a fine, that does not translate to Tesla failing.

Also this settles the question whether SEC is trying to remove Elon as CEO:

That tweet/headline is not proof of anything, firstly. Further, it could reasonably be interpreted as their stance while the case proceeds. The replies to the tweet itself echo this likelihood. However, to suggest they're not seeking his dismissal from officer or director status for any public company completely ignores the actual docket filed. It states this plainly, in addition to monetary penalties.

Having said this, I'm not about to say it's going to end up happening. Even in the docket and press conference, it's pretty apparent there's some pettiness going on and the SEC is clearly over-reaching. Making allegations about the $420 reference and his girlfriend is tacky, unless they've got ironclad proof otherwise, and undermines their own credibility as they attempt to go after someone for the same reason. Further, there are already sources reporting that there was a settlement in the works before the suit was filed, which makes this look like either the settlement was abandoned due to the suit or the suit was a response to the settlement not being agreed to.
 

TheTony

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#14
Crazy situation, but Elon has himself to blame for this. As a fan of this overall mission and goals, there is no doubt he has been doing many questionable things of late. Hopefully this gets resolved in some way that keeps Elon at the helm of Tesla and he learns to settle down and continue focusing on changing the world, rather than all this other stuff.
That seems so easy and sensible. However, some "type a" personalities are wired that way - the part of them that makes them impulsive or stubborn or competitive to the point of damage also provides the ambition, vision and determination to put them in a position to have something to lose in the first place.

Nonetheless, finding that sustainable balance is probably the ideal, if that's possible. It might mean he's less ambitious or driven. However, even if you ignore his negative outward acts, it's undeniable that he's burning the candle at both ends and that level is not in his best interest, in the long term.
 

garsh

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#15
Further, there are already sources reporting that there was a settlement in the works before the suit was filed, which makes this look like either the settlement was abandoned due to the suit or the suit was a response to the settlement not being agreed to.
Several articles are now reporting that Musk's lawyers pulled out of a settlement after having mostly come to an agreement. The SEC filing was done quickly afterwards.

My guess: Musk was happy to pay several million dollars in fines, but the SEC was probably pushing for some sort of statement or limitation on Musk, and in the end he didn't want to compromise on that aspect.
 

SoFlaModel3

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#16
For anyone that watches Billions, I feel like I’m watching the latest season right now.
 

garsh

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#19
Unless the SEC forces him out.
If the SEC was willing to settle, it seems unlikely that they were pushing for this in a settlement. So I doubt this will happen.
 

iChris93

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#20
If the SEC was willing to settle, it seems unlikely that they were pushing for this in a settlement. So I doubt this will happen.
As far as I know, we do not know, at least definitively, what fell apart in the settlement talks. Maybe they were asking that he steps down.