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You’re trying to define investors as only people owning Tesla stock. The SEC specifies the penalties will go to investors hurt by Musks actions, which I take to
by travmatt 8y ago
You’re trying to define investors as only people owning Tesla stock. The SEC specifies the penalties will go to investors hurt by Musks actions, which I take to mean stock market investors who Elon targeted by using his position as ceo to spread information that he knew to be misleading in order to harm their positions. It doesn’t really make sense to try and define ‘equal justice’ from the vantage point of those people who were helped by the illegal actions in question.
- perl4ever 8y agoYou (and others) seem to assume there's a zero-sum game between long and short investors and I'm neglecting the interests of the shorts. I don't think it follows that what harms longs benefits the shorts that were harmed by Musk's tweets. So there is no benefit to compare to the harm done by the enforcement. Unless you think that reducing Musk's role in the company will lead to the downfall of the company and that is a good thing because someone will profit, which seems like a weird idea to me.
- travmatt 8y agoI think Elon Musk knowingly misled the public in order to harm the financial positions of certain investors - and it seems his settlement with the SEC indicates that he accepts those charges against him. I think it’s inappropriate for companies in the public market to be led by individuals who attempt such fraud, and it seems like both Elon Musk and the SEC have the same opinion. I think much more harm would be done to the financial markets if people are allowed to commit fraud without repercussions - the settlement, again, wasn’t reached by considering how to best ensure Elon musk and Tesla remain profitable, it was made in consideration of how to dissuade other ceo’s in committing similar frauds.