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SEC Sends Subpoena to Tesla in Probe Over Musk Tweets

60 points by Puer 8y ago

Puer 8y ago
https://outline.com/u2qNKA https://outline.com/u2qNKA Outline link, paywall.
chmaynard 8y ago
Musk is a brilliant entrepreneur, but he is also a charlatan and a terrible CEO. The solution to this crisis is quite simple. The Tesla board of directors should relieve Musk from his duties as CEO and, if necessary, remove him from the Board itself. Disclaimer: My opinions only. I have no financial interest in Tesla's success or failure.
- icelancer 8y ago
  >> charlatan No, he isn't. This word is far too strong. He might not be a good CEO but he's definitely not someone who "falsely claims to have a special skill."
  - knuththetruth 8y ago
    ...such as the ability to rescue children with a magical submarine?
    - bytematic 8y ago
      The one he demonstrated?
      - jonathankoren 8y ago
        You mean the one that was dubbed completely impractical? Making a water tight tube isn’t hard.
        coatmatter 8y ago
        Completely impractical is correct. From an ABC 4 Corners interview with one of the expert cave divers involved: TRANSCRIPT EXCERPT: > JASON MALLINSON, BRITISH CAVE DIVER: "They had a full-face mask on. So, it was basically that one thing that if the mask that they were using became dislodged and water entered that mask and it- couldn't get it out, that was the one thing that would kill them. You got to a section, you know, th-the vertical section we was talking about, and by that time you've been in the system for five hours. You don't remember where the vertical section is and the only time you find about it is when your head bangs against the wall there. And you, you're trying to get yourself through this vertical section, but you can't remember exactly how it's laid out So, I'm trying to get myself through it, but I'm also trying to get a kid through it, who's vert- sort of horizontally in the water. Trying to post him through - no, that doesn't work; pull him back. Trying to post myself through - that doesn't work. And you could spend several minutes at one, just one obstacle to try and find your way through. And you know, eventually we did it, but it's a very slow process and quiet, quite daunting." http://www.abc.net.au/4corners/out-of-the-dark/10000580 http://www.abc.net.au/4corners/out-of-the-dark/10000580
      - knuththetruth 8y ago
        In a swimming pool? In a tweet?
    - berbec 8y ago
      OK I was with GP until this comment.
- sctb 8y ago
  Let's please resist the temptation to go another round of generic Musk-this Musk-that.
  - GW150914 8y ago
    Is there any way to stop a substantive and interesting article like this, which has as it’s only failing that it’s critical of Musk, not be flagged off the front page?
- heurist 8y ago
  He seems to get very little sleep and carry a lot of stress. It all seems to be catching up with him based on his recent gaffes.
- Bud 8y ago
  And replace him with whom, precisely? Did you resurrect Edison?
  - dingaling 8y ago
    Tesla is established in the popular consciousness now and its problems henceforth are production and supply-chain. There are many, many people better qualified than Mr Musk in those fields.
dunpeal 8y ago
Musk's "funding secured" tweet was incredibly irresponsible. Subsequent elaborations by Musk himself showed he had, at most, an initial expression of interest by potential buyers. That tweet is at best an impulsive, reckless, perplexing action by a chief executive who should have known how to stay on the right side of securities law. At worst, it's an emotional attempt to fend off, possibly even cause direct financial loss to his many critics and short-sellers. This doesn't look good for him. This is the key paragraph in the article that makes it serious: > The subpoenas indicate senior SEC officials have authorized a formal investigation of the company, a step up from the initial inquiries the regulator made to Tesla last week. The SEC opens formal investigations when it thinks a violation of law has occurred and that a probe is justified given the nature of the suspected misconduct and the potential harm to investors. Unless Elon can suddenly show he had credible funding secured - contrary to his own blog post of last week - this looks like a strong case for the SEC: > “The release issued earlier Monday clearly raised at least as many questions as it hopes to answer. The probability that there will be an SEC enforcement action is, I think, quite high,” said Joseph Grundfest, a law professor at Stanford University and a former SEC commissioner. > Other experts agreed. John Coffee, a securities and corporate law professor at Columbia University, said the SEC can credibly argue that Mr. Musk’s tweet last week, which caused Tesla’s stock price to jump 11% the day he posted it, didn’t give shareholders the full picture they needed. > “This is a clear statement that he has nothing more than an expression of interest as opposed to a binding commitment,” Mr. Coffee said. “It will tell the SEC that they have a virtually open-and-shut case if they wish to sue.” https://www.wsj.com/articles/musks-tweets-on-tesla-buyout-face-scrutiny-after-saudi-disclosure-1534244400 https://www.wsj.com/articles/musks-tweets-on-tesla-buyout-fa... Besides the SEC, which can lead to both criminal and civil prosecution, there are also civil lawsuits filed in this case - three of them so far: https://www.businessinsider.com/tesla-hit-with-new-lawsuit-alleging-elon-musk-manipulated-stock-price-2018-8 https://www.businessinsider.com/tesla-hit-with-new-lawsuit-a...
- deleted 8y ago
  [deleted]
- adrr 8y ago
  >Besides the SEC, which is a criminal investigation I thought SEC only has civil powers. SEC could force Musk out of Tesla but couldn't levy any criminal charges. Only the DOJ can bring criminal indictments. edit:grammar
neonate 8y ago
http://archive.is/4pDPD http://archive.is/4pDPD
nacho2sweet 8y ago
I am with the on acid while tweeting, Azelia Banks flown out for a possible threesome with Grimes story on this one. I think if he just explains that to the SEC he will be OK. Drunk/fucked up tweeting excuse has always worked for my friends since twitter was founded.
westonplatter0 8y ago
glad to see SEC acting in some form on this. While I hope Tesla succeeds, I rational communication from Wall Street companies.
- westonplatter0 8y ago
  I __prefer__ rational ...
  - craftyguy 8y ago
    HN allows you to edit your post, at least for a few hours after you submit it..
staunch 8y ago
Between this and his "pedo" comment I worry Musk is simply not sleeping enough. Even worse, he may be taking drugs to keep up the pace. I've been following him for 10+ years and never worried about his judgement until these incidents. Taking Tesla private is probably the best possible path because it would relieve a lot of the pressure on him.
- bytematic 8y ago
  Doesn't he fly between 2 cities twice a week to be with his kids and his work. Seems pretty crazy to me.
angstrom 8y ago
It’s not just the shorts that ought to be pissed. He’s intentionally tanking his public companies so they can go private at a discount. Pulled a similar maneuver with solarcity just before profitable revenue could taint the red. Repeating the same shit with Tesla.
- skybrian 8y ago
  So you think he's secretly helping the short-sellers?
  - angstrom 8y ago
    I think he’s fucked speculating shorts and bulls alike. His shit stopped the squeeze triggered by the PIF news. Calls are basically options of an option.
makecheck 8y ago
Has instantly-public texting with no review prior to publication EVER been a good idea? It really seems like the simple solution of requiring ONE other person to OK a message would help so much. It would further help if systems had uneditable history logs so you know exactly how a message got out. Examples of bad texts are widespread, from all over the planet, not limited to companies: - Companies shaken up by impulsive tweets from an executive. (One person, instantly public, no review.) - Remember Hawai’i receiving texts about a missile launch? (One person, instantly public, no review.) - World leaders sending extreme messages that could frankly start a war. (One person, instantly public, apparently no review.) - Reddit founder editing stuff because he got mad. (One person, instant effect, no review.)
gammateam 8y ago
If anyone likes financial entertainment with a dash of the absurd, Zero Hedge was right on the money the same day he tweeted 'funding secured' > "bankers close to Tesla have no knowledge of the buyout." Come to think of it, until just two hours ago, Tesla didn't either. https://www.zerohedge.com/news/2018-08-07/tesla-jumps-saudis-reveal-2-billion-stake https://www.zerohedge.com/news/2018-08-07/tesla-jumps-saudis...
- coatmatter 8y ago
  It's doubly ironic that his apparent intention (or mere desire) to take Tesla private has now only made the share price even more volatile. SpaceX aside, he's really having an anti-Midas touch this year. Can things possibly get any worse? (Is this a safe question to contemplate...?)
vernie 8y ago
If only he'd proposed going private at $420.69
manicdee 8y ago
Will SEC investigating this issue prevent the share acquisition going ahead?

60 points by Puer 8y ago

Puer 8y ago

https://outline.com/u2qNKA https://outline.com/u2qNKA Outline link, paywall.

Musk is a brilliant entrepreneur, but he is also a charlatan and a terrible CEO. The solution to this crisis is quite simple. The Tesla board of directors should relieve Musk from his duties as CEO and, if necessary, remove him from the Board itself. Disclaimer: My opinions only. I have no financial interest in Tesla's success or failure.

icelancer 8y ago
>> charlatan No, he isn't. This word is far too strong. He might not be a good CEO but he's definitely not someone who "falsely claims to have a special skill."
- knuththetruth 8y ago
  ...such as the ability to rescue children with a magical submarine?
  - bytematic 8y ago
    The one he demonstrated?
    - jonathankoren 8y ago
      You mean the one that was dubbed completely impractical? Making a water tight tube isn’t hard.
      - coatmatter 8y ago
        Completely impractical is correct. From an ABC 4 Corners interview with one of the expert cave divers involved: TRANSCRIPT EXCERPT: > JASON MALLINSON, BRITISH CAVE DIVER: "They had a full-face mask on. So, it was basically that one thing that if the mask that they were using became dislodged and water entered that mask and it- couldn't get it out, that was the one thing that would kill them. You got to a section, you know, th-the vertical section we was talking about, and by that time you've been in the system for five hours. You don't remember where the vertical section is and the only time you find about it is when your head bangs against the wall there. And you, you're trying to get yourself through this vertical section, but you can't remember exactly how it's laid out So, I'm trying to get myself through it, but I'm also trying to get a kid through it, who's vert- sort of horizontally in the water. Trying to post him through - no, that doesn't work; pull him back. Trying to post myself through - that doesn't work. And you could spend several minutes at one, just one obstacle to try and find your way through. And you know, eventually we did it, but it's a very slow process and quiet, quite daunting." http://www.abc.net.au/4corners/out-of-the-dark/10000580 http://www.abc.net.au/4corners/out-of-the-dark/10000580
    - knuththetruth 8y ago
      In a swimming pool? In a tweet?
  - berbec 8y ago
    OK I was with GP until this comment.
sctb 8y ago
Let's please resist the temptation to go another round of generic Musk-this Musk-that.
- GW150914 8y ago
  Is there any way to stop a substantive and interesting article like this, which has as it’s only failing that it’s critical of Musk, not be flagged off the front page?
heurist 8y ago
He seems to get very little sleep and carry a lot of stress. It all seems to be catching up with him based on his recent gaffes.
Bud 8y ago
And replace him with whom, precisely? Did you resurrect Edison?
- dingaling 8y ago
  Tesla is established in the popular consciousness now and its problems henceforth are production and supply-chain. There are many, many people better qualified than Mr Musk in those fields.

dunpeal 8y ago

Musk's "funding secured" tweet was incredibly irresponsible. Subsequent elaborations by Musk himself showed he had, at most, an initial expression of interest by potential buyers. That tweet is at best an impulsive, reckless, perplexing action by a chief executive who should have known how to stay on the right side of securities law. At worst, it's an emotional attempt to fend off, possibly even cause direct financial loss to his many critics and short-sellers. This doesn't look good for him. This is the key paragraph in the article that makes it serious: > The subpoenas indicate senior SEC officials have authorized a formal investigation of the company, a step up from the initial inquiries the regulator made to Tesla last week. The SEC opens formal investigations when it thinks a violation of law has occurred and that a probe is justified given the nature of the suspected misconduct and the potential harm to investors. Unless Elon can suddenly show he had credible funding secured - contrary to his own blog post of last week - this looks like a strong case for the SEC: > “The release issued earlier Monday clearly raised at least as many questions as it hopes to answer. The probability that there will be an SEC enforcement action is, I think, quite high,” said Joseph Grundfest, a law professor at Stanford University and a former SEC commissioner. > Other experts agreed. John Coffee, a securities and corporate law professor at Columbia University, said the SEC can credibly argue that Mr. Musk’s tweet last week, which caused Tesla’s stock price to jump 11% the day he posted it, didn’t give shareholders the full picture they needed. > “This is a clear statement that he has nothing more than an expression of interest as opposed to a binding commitment,” Mr. Coffee said. “It will tell the SEC that they have a virtually open-and-shut case if they wish to sue.” https://www.wsj.com/articles/musks-tweets-on-tesla-buyout-face-scrutiny-after-saudi-disclosure-1534244400 https://www.wsj.com/articles/musks-tweets-on-tesla-buyout-fa... Besides the SEC, which can lead to both criminal and civil prosecution, there are also civil lawsuits filed in this case - three of them so far: https://www.businessinsider.com/tesla-hit-with-new-lawsuit-alleging-elon-musk-manipulated-stock-price-2018-8 https://www.businessinsider.com/tesla-hit-with-new-lawsuit-a...

deleted 8y ago
[deleted]
adrr 8y ago
>Besides the SEC, which is a criminal investigation I thought SEC only has civil powers. SEC could force Musk out of Tesla but couldn't levy any criminal charges. Only the DOJ can bring criminal indictments. edit:grammar

neonate 8y ago

http://archive.is/4pDPD http://archive.is/4pDPD

nacho2sweet 8y ago

I am with the on acid while tweeting, Azelia Banks flown out for a possible threesome with Grimes story on this one. I think if he just explains that to the SEC he will be OK. Drunk/fucked up tweeting excuse has always worked for my friends since twitter was founded.

westonplatter0 8y ago

glad to see SEC acting in some form on this. While I hope Tesla succeeds, I rational communication from Wall Street companies.

westonplatter0 8y ago
I __prefer__ rational ...
- craftyguy 8y ago
  HN allows you to edit your post, at least for a few hours after you submit it..

staunch 8y ago

Between this and his "pedo" comment I worry Musk is simply not sleeping enough. Even worse, he may be taking drugs to keep up the pace. I've been following him for 10+ years and never worried about his judgement until these incidents. Taking Tesla private is probably the best possible path because it would relieve a lot of the pressure on him.

bytematic 8y ago
Doesn't he fly between 2 cities twice a week to be with his kids and his work. Seems pretty crazy to me.

angstrom 8y ago

It’s not just the shorts that ought to be pissed. He’s intentionally tanking his public companies so they can go private at a discount. Pulled a similar maneuver with solarcity just before profitable revenue could taint the red. Repeating the same shit with Tesla.

skybrian 8y ago
So you think he's secretly helping the short-sellers?
- angstrom 8y ago
  I think he’s fucked speculating shorts and bulls alike. His shit stopped the squeeze triggered by the PIF news. Calls are basically options of an option.

makecheck 8y ago

Has instantly-public texting with no review prior to publication EVER been a good idea? It really seems like the simple solution of requiring ONE other person to OK a message would help so much. It would further help if systems had uneditable history logs so you know exactly how a message got out. Examples of bad texts are widespread, from all over the planet, not limited to companies: - Companies shaken up by impulsive tweets from an executive. (One person, instantly public, no review.) - Remember Hawai’i receiving texts about a missile launch? (One person, instantly public, no review.) - World leaders sending extreme messages that could frankly start a war. (One person, instantly public, apparently no review.) - Reddit founder editing stuff because he got mad. (One person, instant effect, no review.)

gammateam 8y ago

If anyone likes financial entertainment with a dash of the absurd, Zero Hedge was right on the money the same day he tweeted 'funding secured' > "bankers close to Tesla have no knowledge of the buyout." Come to think of it, until just two hours ago, Tesla didn't either. https://www.zerohedge.com/news/2018-08-07/tesla-jumps-saudis-reveal-2-billion-stake https://www.zerohedge.com/news/2018-08-07/tesla-jumps-saudis...

coatmatter 8y ago
It's doubly ironic that his apparent intention (or mere desire) to take Tesla private has now only made the share price even more volatile. SpaceX aside, he's really having an anti-Midas touch this year. Can things possibly get any worse? (Is this a safe question to contemplate...?)

vernie 8y ago

If only he'd proposed going private at $420.69

manicdee 8y ago

Will SEC investigating this issue prevent the share acquisition going ahead?