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This is a pretty mild punishment compared to the sorts of things the SEC has the power to do, like getting Musk banned for life from any executive position in a
by woodandsteel 8y ago
This is a pretty mild punishment compared to the sorts of things the SEC has the power to do, like getting Musk banned for life from any executive position in any company, forcing him to get rid of all his ownership in Tesla, and fining him many billions of dollars.
That the SEC settled so quickly and for so little makes me think they believed they couldn't get any more to stand up in court. I assume that Musk refused a more harsh earlier settlement because he was aware of this. So he played chicken with the SEC, and the SEC backed down.
It would be really good, though, if Musk learned a lesson from all this and decided to be more responsible in his communications.
- shanghaiaway 8y agoSEC played chicken with Musk and Musk backed down.
- squaresmile 8y agoThat's a weird narrative you are saying. SEC settled quickly and little because this is not a "bad" security fraud. There's little reason to punish him harshly since he probably doesn't have malicious intent. The punishment has to fit the crime after all. No reason for the SEC to destroy a person and company over a tweet. They have to have some punishments though because the fraud was too obvious. The Thursday's failed settlement was slightly better that this one too. SEC's case is likely to hold up in court because Musk's recklessness was too obvious but the court's punishment would probably be similar to the settlement.
- woodandsteel 8y agoYou are just saying what I said but in different words.