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So glad I own TSLA!!!

  • Last Updated:
  • Dec 18th, 2018 1:56 pm
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Deal Addict
Jul 15, 2006
3377 posts
360 upvotes
I wish Musk didn’t have as much impact on the stock as he currently does. Tesla is a catalyst that’s good for the auto industry and there is real potential there to do what Apple did with smartphones. Sadly, it’s in this situation because the CEO is somewhat eccentric. It would be sad to see Tesla as a company fail.

Cheers,
treva84 wrote:
Sep 28th, 2018 2:54 pm
Tesla Bond Default Insurance reaches all time high - market price indicates a 47% chance Tesla will default.
Deal Addict
Aug 17, 2008
1648 posts
837 upvotes
SEC Fail: TSLA is going to explode higher without further information ahead of Monday.

(Updated to put in the full PR below and SEC webcast https://www.sec.gov/video/webcast-archi ... nce-092718)

FOR IMMEDIATE RELEASE
2018-226

Washington D.C., Sept. 29, 2018 —
The Securities and Exchange Commission announced today that Elon Musk, CEO and Chairman of Silicon Valley-based Tesla, Inc., has agreed to settle the securities fraud charge brought by the SEC against him last week. The SEC also today charged Tesla with failing to have required disclosure controls and procedures relating to Musk’s tweets, a charge that Tesla has agreed to settle. The settlements, which are subject to court approval, will result in comprehensive corporate governance and other reforms at Tesla—including Musk’s removal as Chairman of the Tesla board—and the payment by Musk and Tesla of financial penalties.

According to the SEC’s complaint against him, Musk tweeted on August 7, 2018 that he could take Tesla private at $420 per share — a substantial premium to its trading price at the time — that funding for the transaction had been secured, and that the only remaining uncertainty was a shareholder vote. The SEC’s complaint alleged that, in truth, Musk knew that the potential transaction was uncertain and subject to numerous contingencies. Musk had not discussed specific deal terms, including price, with any potential financing partners, and his statements about the possible transaction lacked an adequate basis in fact. According to the SEC’s complaint, Musk’s misleading tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to significant market disruption.

According to the SEC’s complaint against Tesla, despite notifying the market in 2013 that it intended to use Musk’s Twitter account as a means of announcing material information about Tesla and encouraging investors to review Musk’s tweets, Tesla had no disclosure controls or procedures in place to determine whether Musk’s tweets contained information required to be disclosed in Tesla’s SEC filings. Nor did it have sufficient processes in place to that Musk’s tweets were accurate or complete.

Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations. Among other relief, the settlements require that:

* 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.
* “The total package of remedies and relief announced today are specifically designed to address the misconduct at issue by strengthening Tesla’s corporate governance and oversight in order to protect investors,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms —including an obligation to oversee Musk’s communications with investors—and both will pay financial penalties,” added Steven Peikin, Co-Director of the SEC’s Enforcement Division. “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders.”

The SEC’s investigation was conducted by Walker Newell, Brent Smyth, and Barrett Atwood and supervised by Steven Buchholz, Erin Schneider, and Jina Choi in the San Francisco Regional Office and Cheryl Crumpton in the SEC’s Home Office.
Last edited by MrMom on Sep 29th, 2018 6:06 pm, edited 2 times in total.
Deal Addict
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Jul 22, 2015
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MrMom wrote:
Sep 29th, 2018 5:25 pm
SEC Fail: TSLA is going to explode higher without further information ahead of Monday.

"Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge"

https://www.sec.gov/news/press-release/2018-226

Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations. Among other relief, the settlements require that:

* 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.

“The total package of remedies and relief announced today are specifically designed to address the misconduct at issue by strengthening Tesla’s corporate governance and oversight in order to protect investors,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms —including an obligation to oversee Musk’s communications with investors—and both will pay financial penalties,” added Steven Peikin, Co-Director of the SEC’s Enforcement Division. “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders.”
That's it?
SEC is a joke, as usual.
Deal Addict
Jul 15, 2006
3377 posts
360 upvotes
Oh boy, he remains CEO, Bulls are going to be out swinging -- As for the SEC, I think Musk made his first public smart looking decision in a long long while, nobody in their right mind goes to fight the SEC. He made the right choice for his shareholders.
With that said, nobody knows what's going on in that head of his so I doubt this will be the end of the wild ride for shareholders.

I don't personally own Tesla stock but do want to see realize the EV disruption to its full extent, this is great.

Cheers,
Deal Addict
Dec 3, 2014
1228 posts
279 upvotes
Ontario
Cress wrote:
Sep 28th, 2018 2:59 pm
I wish Musk didn’t have as much impact on the stock as he currently does. Tesla is a catalyst that’s good for the auto industry and there is real potential there to do what Apple did with smartphones. Sadly, it’s in this situation because the CEO is somewhat eccentric. It would be sad to see Tesla as a company fail.

Cheers,
A clear headed individual wouldn’t go for it like Musk does. It’s part of the package.
Sr. Member
User avatar
Mar 10, 2018
938 posts
44 upvotes
Karma is biatch. He sues Ontario government and he pays that money.

esla's Musk ousted as chairman in SEC settlement, will remain CEO
Elon Musk will relinquish the role of Tesla Inc. chairman and split a US$40 million penalty with the electric-car maker to settle fraud charges brought by the U.S. over his tweeted claims about taking the company private
You guys seem trapped by the confines of your own ideologies.
Deal Fanatic
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Sep 8, 2007
6077 posts
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callernamet wrote:
Sep 29th, 2018 11:15 pm
Karma is biatch. He sues Ontario government and he pays that money.

esla's Musk ousted as chairman in SEC settlement, will remain CEO
Plus there’s still the DOJ, indidivual lawsuits to deal with. There were real financial consequences to his action to investors that remain to be dealt with. And with him gone as Chariman that’s minus 1 on the board plus 2 new independent directors. As CEO he is now an employee. And the board has to now be aware the spotlight is on them if he goes on his crazy rampages again. Judging by the idea he turned down the first deal, the board must have overrode him the next time around or he got common sense?

I think the SEC realized he’s a big part of the stocks valuation and didn’t want to be seen as destroying the company but also enforcing something. If people think being removed as Chairman isn’t a big deal, I’d hazard they are wrong.
Deal Addict
Nov 9, 2013
2551 posts
1220 upvotes
Edmonton, AB
cartfan123 wrote:
Sep 30th, 2018 7:34 am
I think the SEC realized he’s a big part of the stocks valuation and didn’t want to be seen as destroying the company but also enforcing something. If people think being removed as Chairman isn’t a big deal, I’d hazard they are wrong.
I agree - I think this shows the psychology around Elon Musk and Tesla. People love to eat up the narrative he sells and everyone is tripping over themselves to believe he will succeed, even if the facts to date suggest that Tesla may not. With or without Elon, it's still a car company with too much debt that has been unprofitable for 15 years. Yes, they make a nice car and have a fanatical following, but no matter how you spin it the balance sheet and financial metrics still suck.

It reminds me of this cartoon:

Image
Deal Addict
Aug 17, 2008
1648 posts
837 upvotes
cartfan123 wrote:
Sep 30th, 2018 7:34 am
Plus there’s still the DOJ, indidivual lawsuits to deal with. There were real financial consequences to his action to investors that remain to be dealt with. And with him gone as Chariman that’s minus 1 on the board plus 2 new independent directors. As CEO he is now an employee. And the board has to now be aware the spotlight is on them if he goes on his crazy rampages again. Judging by the idea he turned down the first deal, the board must have overrode him the next time around or he got common sense?

I think the SEC realized he’s a big part of the stocks valuation and didn’t want to be seen as destroying the company but also enforcing something. If people think being removed as Chairman isn’t a big deal, I’d hazard they are wrong.
+1 I think you are on the right track. This article said the same thing in Jan '17, well ahead of this clusterf**k.

Trump’s Nominee for SEC Chief: Implications for Startups and Fintech
https://medium.com/@shribhashyam/trumps ... 6a97359071

A Lighter Touch

That Mr. Clayton is a deal maker rather than a prosecutor is a strong signal that the SEC’s agenda will lean more towards facilitating capital formation and further away from enforcement. For the fintech and startup communities, there are a few specific ramifications I’ll highlight.

The SEC will likely soften the stance enunciated by Chair White in her “Silicon Valley Initiative” speech on March 31, 2016. In that speech, she put the Valley on notice that the SEC was paying attention to what was going on there, given the “eye-popping” valuations, greater breadth of investor participation, and sheer amounts of capital being deployed. It’s reasonable to think that Mr. Clayton would not focus as much on possible securities fraud in the Valley, and be more deferential to a world where investors are sophisticated and can fend for themselves. I think we’ll also see a slowdown in the momentum of SEC investigations of startups. The SEC is reportedly investigating Theranos and Hampton Creek, for false or misleading statements in their pitch decks and other offering documents related to their fundraising. These types of investigations by the SEC will more likely slow down under Mr. Clayton’s regime.
Deal Expert
User avatar
Dec 11, 2005
18917 posts
1340 upvotes
Who is taking bets that Kimbal Musk is going to be the new Chairman :)
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Expert
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Sep 19, 2004
21935 posts
3994 upvotes
Waterloo
SEC is a joke, $40 million penalty, while shorts lost more from that 1 tweet

I await more Class Action lawsuits

so they're saying CEO can "manipulate" stocks as long as they're willing to settle
Let's short/long a weed stock and for CEO to hint about going private/BO, BOOM! skyrocket
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Deal Addict
Aug 17, 2008
1648 posts
837 upvotes
DOJ is responsible for any criminal actions as @cartfan123 pointed out, so more maybe to come. SEC is just civil, but yeah...goes to the article above

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