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> At what point is the investor expected to take responsibility for bad investments based on speculation? How is making trades based on statements from the CEO

by tree3 6y ago

> At what point is the investor expected to take responsibility for bad investments based on speculation? How is making trades based on statements from the CEO speculation?

CivBase 6y ago
Elon tweeted that he was "considering taking Tesla private". It clearly was not a done deal. Evaluations were made based on speculation that Elon would follow through. He obviously did not. The stock value temporarily spiked and a lot of investors looking to profit off the ordeal ended up making bad investments and lost big. At the end of the day, the stock market is akin to gambling and sometimes you loose. Elon's actions were irresponsible at best, but I think suing him sets a bad precedent. There doesn't seem to be any evidence of insider trading. It seems to me like some investors are just mad that they lost money because they put too much stock in Elon's twitter feed.
- thomaskcr 6y ago
  He said "funding secured", the board knew nothing of what was going on and scrambled to make it retroactively true. > because they put too much stock in Elon's twitter feed. That would be a wonderful argument, if the company had not put into an actual 8K that Elon's twitter is a source of official information about the company. https://www.sec.gov/Archives/edgar/data/1318605/000119312513427630/d622890d8k.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312513... "Tesla investors and others should note that we announce material information to the public about our company, products and services and other issues through a variety of means, including Tesla’s website, press releases, SEC filings, blogs and social media, in order to achieve broad, non-exclusionary distribution of information to the public. We encourage our investors and others to review the information we make public in the locations below as such information could be deemed to be material information." "For additional information, please follow Elon Musk’s and Tesla’s Twitter accounts: twitter.com/elonmusk and twitter.com/TeslaMotors"
  - CivBase 6y ago
    > He said "funding secured", the board knew nothing of what was going on and scrambled to make it retroactively true. Yeah, that's pretty irresponsible. I don't see how it changes things, though. IANAL, but I suspect there's a difference between "follow Elon's twitter because he might release material information there" and "everything Elon tweets is material information". I have no desire to defend Musk or Tesla. The practice of distributing official information via social media posts is pretty sketchy. But that such an arrangement is even possible only continues to highlight how dumb the stock market is. The more I learn about this, the more it sounds like investors playing with fire and whining when they get burned.

by tree3 6y ago

> At what point is the investor expected to take responsibility for bad investments based on speculation? How is making trades based on statements from the CEO speculation?

CivBase 6y ago

Elon tweeted that he was "considering taking Tesla private". It clearly was not a done deal. Evaluations were made based on speculation that Elon would follow through. He obviously did not. The stock value temporarily spiked and a lot of investors looking to profit off the ordeal ended up making bad investments and lost big. At the end of the day, the stock market is akin to gambling and sometimes you loose. Elon's actions were irresponsible at best, but I think suing him sets a bad precedent. There doesn't seem to be any evidence of insider trading. It seems to me like some investors are just mad that they lost money because they put too much stock in Elon's twitter feed.

thomaskcr 6y ago
He said "funding secured", the board knew nothing of what was going on and scrambled to make it retroactively true. > because they put too much stock in Elon's twitter feed. That would be a wonderful argument, if the company had not put into an actual 8K that Elon's twitter is a source of official information about the company. https://www.sec.gov/Archives/edgar/data/1318605/000119312513427630/d622890d8k.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312513... "Tesla investors and others should note that we announce material information to the public about our company, products and services and other issues through a variety of means, including Tesla’s website, press releases, SEC filings, blogs and social media, in order to achieve broad, non-exclusionary distribution of information to the public. We encourage our investors and others to review the information we make public in the locations below as such information could be deemed to be material information." "For additional information, please follow Elon Musk’s and Tesla’s Twitter accounts: twitter.com/elonmusk and twitter.com/TeslaMotors"
- CivBase 6y ago
  > He said "funding secured", the board knew nothing of what was going on and scrambled to make it retroactively true. Yeah, that's pretty irresponsible. I don't see how it changes things, though. IANAL, but I suspect there's a difference between "follow Elon's twitter because he might release material information there" and "everything Elon tweets is material information". I have no desire to defend Musk or Tesla. The practice of distributing official information via social media posts is pretty sketchy. But that such an arrangement is even possible only continues to highlight how dumb the stock market is. The more I learn about this, the more it sounds like investors playing with fire and whining when they get burned.