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> Tesla shareholders as a class aren't the harmed party the SEC seeks to address a harm to, they are the principal who failed to adequately supervise their agen
by twblalock 8y ago
> Tesla shareholders as a class aren't the harmed party the SEC seeks to address a harm to, they are the principal who failed to adequately supervise their agent who is the bad actor in this case, which is why Tesla as well as Musk is, even with the settlement, paying a fine.
Then why did the SEC say "The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders"?
Source: https://www.sec.gov/news/press-release/2018-226 https://www.sec.gov/news/press-release/2018-226
- dunpeal 8y agoThe SEC cares about the public in general. Tesla shareholders are part of the public. So are potential investors who do not currently hold stock, and investors who short Tesla and/or invest in its competitors. There is absolutely nothing wrong with trying to minimize harm to Tesla shareholders, in fact that would be part of the SEC's stated mission. However, it is not the only part. If Musk used fraud to inflate Tesla's share value, benefiting Tesla shareholders but harming many other people, then the SEC would still intervene. In other words, it's a consideration, but not the only one.