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Ted Hoppe
09-27-2018, 04:47 PM
SEC charges Tesla CEO Elon Musk with fraud - CNBC.com (https://www.cnbc.com/2018/09/27/tesla-falls-4percent-on-report-elon-musk-sued-by-sec.html)

https://www.cnbc.com/.../tesla-falls-4percent-on-report-elon-musk-sued-by-sec.html


2 hours ago - Tesla CEO Elon Musk has been sued by the Securities and Exchange Commission for fraud, according to court documents filed Thursday.



The SEC complaint alleges that Musk issued "false and misleading" statements and failed to properly notify regulators of material company events.
Sources close to the company told CNBC the company was also expecting to be sued, though Tesla was not named as a defendant in the complaint.
In August, Musk tweeted that he was considering taking Tesla private, adding "funding secured."


Tesla (https://www.cnbc.com/quotes/?symbol=TSLA) CEO Elon Musk has been sued by the Securities and Exchange Commission for fraud, according to court documents filed Thursday. Sources close to the company told CNBC the company was also expecting to be sued, though Tesla was not named as a defendant in the complaint.
Shares of the automaker fell (https://www.cnbc.com/2018/09/27/tesla-shares-after-sec-charges-ceo-elon-musk-with-fraud.html) roughly 11 percent in extended trading Thursday. The stock is roughly 30 percent below its 52-week high of $387.46.
The SEC complaint alleges that Musk issued "false and misleading" statements and failed to properly notify regulators of material company events. The SEC held a press conference (https://www.cnbc.com/2018/09/27/watch-sec-holds-press-conference-after-suing-tesla-ceo-elon-musk.html) Thursday night regarding the complaint.

Among other remedies, the SEC is seeking to bar Musk from serving as an officer or director of a publicly traded company if found guilty

CWSmith
09-27-2018, 04:59 PM
Wow! This may be the one news day that no one will notice.

Chris Smith porter maine
09-27-2018, 05:10 PM
You had to see that coming.

skuthorp
09-27-2018, 05:19 PM
"The SEC complaint alleges that Musk issued "false and misleading" statements"

Musk could beat that by quoting Donald as precedent……...:rolleyes:

peb
09-27-2018, 08:29 PM
When Musk made the tweet, I actually posted that it was one thing I thought Musk did right. After all, fair disclosure laws are intended to get critical information out to all investors simultaneously. What better way than a tweet? Well, I assumed he was not just pulling the "funding secured" part out of thin air. In hindsight, I should have known better. I have read (and commented) on Musk's statements in conference calls, and how analysts just eat up his most outlandish claims. Of course, that treatment ended this past quarter (finally). But seeing how he just seemed to make stuff up on the fly during those calls, this tweet should not have been taken seriously. I just could not imagine a CEO making up a statement like that, even Musk.

Hugh Conway
09-27-2018, 11:24 PM
I just could not imagine a CEO making up a statement like that, even Musk.

see, you thought of Elon as a good CEO. He's not, never will be. In this case he was acting as a vain late-40s man trying to make his 30 year old girlfriend laugh.

Bob (oh, THAT Bob)
09-28-2018, 04:34 AM
What better way to take the company private, than to cause the stock price to plummet first? Sounds smart to me, if he gets away with it.

Norman Bernstein
09-28-2018, 07:06 AM
When Musk made the tweet, I actually posted that it was one thing I thought Musk did right. After all, fair disclosure laws are intended to get critical information out to all investors simultaneously. What better way than a tweet? Well, I assumed he was not just pulling the "funding secured" part out of thin air. In hindsight, I should have known better. I have read (and commented) on Musk's statements in conference calls, and how analysts just eat up his most outlandish claims. Of course, that treatment ended this past quarter (finally). But seeing how he just seemed to make stuff up on the fly during those calls, this tweet should not have been taken seriously. I just could not imagine a CEO making up a statement like that, even Musk.

Perhaps, far into the future, Tesla will be a profitable company with groundbreaking technology, and Musk will be considered to be a visionary genius....

....but that is simply a hope, and, as I said, far intro the future.

Right now, Tesla has burned through nearly $4 BILLION of investors money without having ever made a profit, is having trouble scaling up production, and really doesn't have a defensibly exclusive technological advantage over the 'mature' car companies. As Tesla promotes and expands the recharging infrastructure, other auto makers will be able to take advantage of Tesla's losses, to make actual profits.

peb
09-28-2018, 07:52 AM
see, you thought of Elon as a good CEO. He's not, never will be. In this case he was acting as a vain late-40s man trying to make his 30 year old girlfriend laugh.No, I never thought he was a good CEO, the irony is that his tweet may have been the only time I wrote something positive about the way he runs Tesla. My statement for over two years now has been:. "Tesla is this generations DeLorean". My criticisms have gone back way farther.

Such a stupid business model, I still cannot believe he was able to fund this company for so long. He entered a industry that didn't need disrupting, a well functioning industry. For years he has made outrageous claims and predictions. But building cars is hard. Not only can he not meet production targets, but apparently quality of Tesla cars may be at or near the bottom of the industry. Service must really suck for owners (wait times of 3 months for a body panel).

They will go bankrupt. Perhaps someone will buy their battery technology and production (that's not a sure bet), the car production will not even be bought for pennies on the dollar. No car company would trust their designs or want the headache of trying to fix their manufacturing.


I will give him this credit: SpaceX accomplishments are dang impressive. Now space launching is an industry that did need disrupting. But I do not think it a coincidence that Tesla was taken public early on and SpaceX is still private.

Old Dryfoot
09-28-2018, 08:43 AM
Tesla battery technology is the industry leader. If the company does go toes up, someone will be wanting that technology and its assets.

peb
09-28-2018, 09:51 AM
Tesla battery technology is the industry leader. If the company does go toes up, someone will be wanting that technology and its assets.The questiona ares: how far are they ahead, do the even have battery manufacturing capability to support a larger car company, are they the leader because they cut corners on safety. It's really hard for me to trust them at all.

Andrew Craig-Bennett
09-28-2018, 09:54 AM
I agree with peb. I think Musk was trying to run a car company like a tech company.

Hugh Conway
09-28-2018, 10:21 AM
I don't think Musk runs the company at least in any fashion of what people normally associate with the title or role of "CEO". At his other ventures he has someone "in charge" - at Space-X Gwynne Shotwell. There is no one "in charge" of TSLA so it sort of devolves to his whims and wishes. That impression might be totally off-base, but in the voluminous press coverage of musk it's pretty difficult to find anything out of his mouth that lines up with his actual behavior.

Not settling with the SEC when they offered what amounted to a hand slap? That's just stupid.

peb
09-28-2018, 01:14 PM
I don't think Musk runs the company at least in any fashion of what people normally associate with the title or role of "CEO". At his other ventures he has someone "in charge" - at Space-X Gwynne Shotwell. There is no one "in charge" of TSLA so it sort of devolves to his whims and wishes. That impression might be totally off-base, but in the voluminous press coverage of musk it's pretty difficult to find anything out of his mouth that lines up with his actual behavior.

Not settling with the SEC when they offered what amounted to a hand slap? That's just stupid.

Just saw this, I am amazed the board of directors did not tell him he had to take the deal. This could very well be the straw that breaks the camel's back with regards to Tesla.

Too Little Time
09-29-2018, 06:51 PM
Looks like it is settled.

https://www.wsj.com/articles/elon-musk-can-remain-tesla-ceo-but-must-step-down-as-chairman-in-sec-settlement-1538257394?mod=hp_lead_pos1

Elon Musk reached a settlement with the Securities and Exchange Commission that allows him to remain chief executive of Tesla (http://quotes.wsj.com/TSLA) Inc. TSLA -13.90% (http://quotes.wsj.com/TSLA?mod=chiclets)but requires that he step aside from the chairman role for three years.

Rum_Pirate
09-30-2018, 01:05 AM
Plus the fines