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Musk may have made the biggest mistake of his career with that single tweet. According to rumors, Tesla's internal legal team has begun to calculate damages; po

Musk may have made the biggest mistake of his career with that single tweet. According to rumors, Tesla's internal legal team has begun to calculate damages; possible impact from potential investor lawsuits apparently surpasses $1 billion. https://twitter.com/CGasparino/status/1030176495631839232 https://twitter.com/CGasparino/status/1030176495631839232

dnomad 8y ago
According to rumors I heard that Tesla's internal legal team has determined that Musk will have to give up one of his children. But then that could be just pure bullshit like all of these Tesla "rumors" turn out to be. When do you suppose people will learn not to buy into and repeat stupid rumors as fact?
- enraged_camel 8y ago
  There is a SEC investigation. We know that for a fact. And that fact alone indicates that the situation is extremely serious. Dire, even. The federal government does not look kindly upon stock manipulation. The linked NYTimes piece is Tesla's PR "submarine" at work. http://www.paulgraham.com/submarine.html http://www.paulgraham.com/submarine.html
  - dnomad 8y ago
    The presence of an SEC investigation is cause for concern. But why not just say that? Why repeat absurd rumors about billion dollar investor lawsuits? What does it gain you to spread, by your own admission, completely baseless rumors? I keep thinking HN is not the place for this sort of nonsense but then maybe I'm the one in the wrong. Certainly most discussions about Musk here are not based on any kind of rational analysis of the facts. Yours is the popular position, if a bit wearisome.
    - enraged_camel 8y ago
      >>Why repeat absurd rumors about billion dollar investor lawsuits? You misunderstand. The calculation is not about a single lawsuit costing billions. It's about potential damages from ALL possible lawsuits from pissed off short-sellers. And that's not absurd at all - it's a real possibility, since Tesla stock is one of the most popular on the stock market.
      - kgwgk 8y ago
        Not only from short-sellers. Many people bought TSLA at $380 because, you know, funding secured.
        thewizardofaus 8y ago
        Many people shorted TSLA at $380 because, you know, easy money
        kgwgk 8y ago
        I don’t think those can sue for damages :-)
      - compcoffee 8y ago
        >It's about potential damages from ALL possible lawsuits from pissed off short-sellers. What happens if you bought calls for a price higher than $420? They are worthless. You don't have to be a short-seller to have been burned by this.
        dragontamer 8y ago
        > What happens if you bought calls for a price higher than $420? They are worthless. To be fair, they always were worthless at best, the company would be bought at $420 (and no higher). ------- I think you mean "bought calls at strike price $400" (leaving ~$20 buffer before the presumed buyout price). If Tesla were bought at $420, then calls at strike $400 would be worth $20 each. Of course, as the $420 buyout price is falling apart, a call@400 is looking pretty worthless right now.
TomMckenny 8y ago
Pity that we've structured our world such that one tweet can so damage such clever companies as Tesla and maybe SpaceX.
- dwaltrip 8y ago
  I'm pretty sure it's always been the case that those with power can cause a lot of damage with a small amount of effort.
  - Fnoord 8y ago
    Yes, but those in power were able to get away with it in the past. Now they're held accountable, in public, like a public crucifixion. Pressure of 21st century is enormous.
    - wastedhours 8y ago
      Not just the 21st century, this story on Ratners losing billions after some ill-thought jokes at the company's expense: https://thehustle.co/gerald-ratners-billion-dollar-speech https://thehustle.co/gerald-ratners-billion-dollar-speech
      - Fnoord 8y ago
        Ah yes, the infamous Ratner effect. I learned about it due to the Elop effect (the nail in the coffin of good ol' Nokia's demise).
- rabidrat 8y ago
  There is an old Japanese saying: The reputation of a thousand years may be determined by the conduct of one hour.
- bdcravens 8y ago
  Twitter is old enough that we are now holding people accountable for things they said in years past, to the point of ruining careers and lives. No reason why someone running a company should receive a free pass.

dnomad 8y ago

According to rumors I heard that Tesla's internal legal team has determined that Musk will have to give up one of his children. But then that could be just pure bullshit like all of these Tesla "rumors" turn out to be. When do you suppose people will learn not to buy into and repeat stupid rumors as fact?

enraged_camel 8y ago
There is a SEC investigation. We know that for a fact. And that fact alone indicates that the situation is extremely serious. Dire, even. The federal government does not look kindly upon stock manipulation. The linked NYTimes piece is Tesla's PR "submarine" at work. http://www.paulgraham.com/submarine.html http://www.paulgraham.com/submarine.html
- dnomad 8y ago
  The presence of an SEC investigation is cause for concern. But why not just say that? Why repeat absurd rumors about billion dollar investor lawsuits? What does it gain you to spread, by your own admission, completely baseless rumors? I keep thinking HN is not the place for this sort of nonsense but then maybe I'm the one in the wrong. Certainly most discussions about Musk here are not based on any kind of rational analysis of the facts. Yours is the popular position, if a bit wearisome.
  - enraged_camel 8y ago
    >>Why repeat absurd rumors about billion dollar investor lawsuits? You misunderstand. The calculation is not about a single lawsuit costing billions. It's about potential damages from ALL possible lawsuits from pissed off short-sellers. And that's not absurd at all - it's a real possibility, since Tesla stock is one of the most popular on the stock market.
    - kgwgk 8y ago
      Not only from short-sellers. Many people bought TSLA at $380 because, you know, funding secured.
      - thewizardofaus 8y ago
        Many people shorted TSLA at $380 because, you know, easy money
        kgwgk 8y ago
        I don’t think those can sue for damages :-)
    - compcoffee 8y ago
      >It's about potential damages from ALL possible lawsuits from pissed off short-sellers. What happens if you bought calls for a price higher than $420? They are worthless. You don't have to be a short-seller to have been burned by this.
      - dragontamer 8y ago
        > What happens if you bought calls for a price higher than $420? They are worthless. To be fair, they always were worthless at best, the company would be bought at $420 (and no higher). ------- I think you mean "bought calls at strike price $400" (leaving ~$20 buffer before the presumed buyout price). If Tesla were bought at $420, then calls at strike $400 would be worth $20 each. Of course, as the $420 buyout price is falling apart, a call@400 is looking pretty worthless right now.

TomMckenny 8y ago

Pity that we've structured our world such that one tweet can so damage such clever companies as Tesla and maybe SpaceX.

dwaltrip 8y ago
I'm pretty sure it's always been the case that those with power can cause a lot of damage with a small amount of effort.
- Fnoord 8y ago
  Yes, but those in power were able to get away with it in the past. Now they're held accountable, in public, like a public crucifixion. Pressure of 21st century is enormous.
  - wastedhours 8y ago
    Not just the 21st century, this story on Ratners losing billions after some ill-thought jokes at the company's expense: https://thehustle.co/gerald-ratners-billion-dollar-speech https://thehustle.co/gerald-ratners-billion-dollar-speech
    - Fnoord 8y ago
      Ah yes, the infamous Ratner effect. I learned about it due to the Elop effect (the nail in the coffin of good ol' Nokia's demise).
rabidrat 8y ago
There is an old Japanese saying: The reputation of a thousand years may be determined by the conduct of one hour.
bdcravens 8y ago
Twitter is old enough that we are now holding people accountable for things they said in years past, to the point of ruining careers and lives. No reason why someone running a company should receive a free pass.