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Remember that Elon agreed to have his tweets reviewed by Tesla's in-house counsel in lieu of formal SEC action after he lied about taking the company private.

by mike_d 7y ago

Remember that Elon agreed to have his tweets reviewed by Tesla's in-house counsel in lieu of formal SEC action after he lied about taking the company private. He recently tweeted that the stock price was too high. Something legal would never allow him to say, especially if he is on the verge of exercising options. My bet is the SEC isn't going to tolerate this behavior anymore, and he won't be at the helm of any of his companies by the end of the year. He will be just plain poor.

beervirus 7y ago
Take a close look at the actual terms of what is required to be reviewed by the legal team.
gpm 7y ago
He agreed to have material tweets reviewed by Tesla's in house counsel before publishing. With a specific definition of material and examples of content that would be material. This tweet IMHO doesn't fall under that definition of material. Even if you think it did, you're blindly assuming that this tweet wasn't reviewed (which it might well have been, if it was reviewed it was certainly legal instead of probably legal). The SEC doesn't have a choice to tolerate or not tolerate this behavior. They basically lost the last time they sued (it ended in a settlement where the only concession to them was rephrasing an existing agreement after a judge said some strong words), and they would probably lose again if they sued this time.
- kasey_junk 7y ago
  Lol. That and a binding legal agreement that he’d have public statements reviewed. And the small thing of being removed as the chairman of the board. When the SEC starts dictating your board shape no one considers it a loss for the SEC.
  - gpm 7y ago
    > That and a binding legal agreement that he’d have public statements reviewed As I just said, no such general legal agreement exists. The only legal agreement that exists is the one I described in my above comment. I'd cite a source, but citing a negative is basically impossible. So I'd ask that instead you cite that agreement. Sec agreements are public documents. Here is a link to the most recent agreement that the SEC settled with musk on - this is all they got the last time they sued. Note that the previous agreement (which you can dig up if you want) basically said the same in less words. https://www.courtlistener.com/recap/gov.uscourts.nysd.501755/gov.uscourts.nysd.501755.47.0.pdf https://www.courtlistener.com/recap/gov.uscourts.nysd.501755... Order denying the SECs contempt motion as moot following the entry of that consent agreement: https://www.courtlistener.com/recap/gov.uscourts.nysd.501755/gov.uscourts.nysd.501755.48.0.pdf https://www.courtlistener.com/recap/gov.uscourts.nysd.501755...
- clouddrover 7y ago
  > Even if you think it did, you're blindly assuming that this tweet wasn't reviewed Musk said it wasn't reviewed: https://www.wsj.com/articles/tesla-stock-falls-after-ceo-tweets-stock-is-too-high-11588348672 https://www.wsj.com/articles/tesla-stock-falls-after-ceo-twe... His tweets in general are not reviewed. He does not respect the SEC: https://www.youtube.com/watch?v=SIzGdoPu9vs https://www.youtube.com/watch?v=SIzGdoPu9vs
  - gpm 7y ago
    > Musk said it wasn't reviewed: Huh, I hadn't seen that. You're right (upvoted you). > His tweets in general are not reviewed. He does not respect the SEC: I'm perfectly aware, I'm the sort of weirdo who reads the court filings in these lawsuits. I was hoping that he would have been ... cautious ... enough to get this tweet reviewed against the general policy since it is pushing the boundary of the agreement.
dntbnmpls 7y ago
> Remember that Elon agreed to have his tweets reviewed by Tesla's in-house counsel in lieu of formal SEC action after he lied about taking the company private. He said he could've taken it private at $420. Tesla is trading over $800 today. So he probably wasn't lying. > Something legal would never allow him to say, especially if he is on the verge of exercising options. If he were exercising his options, he wouldn't want the share prices to drop. > My bet is the SEC isn't going to tolerate this behavior anymore, and he won't be at the helm of any of his companies by the end of the year. He will be just plain poor. People like you have been saying this for years. I remember the haters/journalists/etc claiming tesla was going to go bankrupt, SEC was going to remove musk, the "pedo guy" was going to ruin Musk, etc. If you want a good laugh read the article and the comments. It's amazing how little journalists know about anything and how wrong online commenters tend to be. "Is Elon Musk trying to commit ‘suicide by SEC’ by taunting the agency?" https://news.ycombinator.com/item?id=19259911 https://news.ycombinator.com/item?id=19259911 There are dozens more if you feel like searching.

by mike_d 7y ago

beervirus 7y ago

Take a close look at the actual terms of what is required to be reviewed by the legal team.

gpm 7y ago

He agreed to have material tweets reviewed by Tesla's in house counsel before publishing. With a specific definition of material and examples of content that would be material. This tweet IMHO doesn't fall under that definition of material. Even if you think it did, you're blindly assuming that this tweet wasn't reviewed (which it might well have been, if it was reviewed it was certainly legal instead of probably legal). The SEC doesn't have a choice to tolerate or not tolerate this behavior. They basically lost the last time they sued (it ended in a settlement where the only concession to them was rephrasing an existing agreement after a judge said some strong words), and they would probably lose again if they sued this time.

kasey_junk 7y ago
Lol. That and a binding legal agreement that he’d have public statements reviewed. And the small thing of being removed as the chairman of the board. When the SEC starts dictating your board shape no one considers it a loss for the SEC.
- gpm 7y ago
  > That and a binding legal agreement that he’d have public statements reviewed As I just said, no such general legal agreement exists. The only legal agreement that exists is the one I described in my above comment. I'd cite a source, but citing a negative is basically impossible. So I'd ask that instead you cite that agreement. Sec agreements are public documents. Here is a link to the most recent agreement that the SEC settled with musk on - this is all they got the last time they sued. Note that the previous agreement (which you can dig up if you want) basically said the same in less words. https://www.courtlistener.com/recap/gov.uscourts.nysd.501755/gov.uscourts.nysd.501755.47.0.pdf https://www.courtlistener.com/recap/gov.uscourts.nysd.501755... Order denying the SECs contempt motion as moot following the entry of that consent agreement: https://www.courtlistener.com/recap/gov.uscourts.nysd.501755/gov.uscourts.nysd.501755.48.0.pdf https://www.courtlistener.com/recap/gov.uscourts.nysd.501755...
clouddrover 7y ago
> Even if you think it did, you're blindly assuming that this tweet wasn't reviewed Musk said it wasn't reviewed: https://www.wsj.com/articles/tesla-stock-falls-after-ceo-tweets-stock-is-too-high-11588348672 https://www.wsj.com/articles/tesla-stock-falls-after-ceo-twe... His tweets in general are not reviewed. He does not respect the SEC: https://www.youtube.com/watch?v=SIzGdoPu9vs https://www.youtube.com/watch?v=SIzGdoPu9vs
- gpm 7y ago
  > Musk said it wasn't reviewed: Huh, I hadn't seen that. You're right (upvoted you). > His tweets in general are not reviewed. He does not respect the SEC: I'm perfectly aware, I'm the sort of weirdo who reads the court filings in these lawsuits. I was hoping that he would have been ... cautious ... enough to get this tweet reviewed against the general policy since it is pushing the boundary of the agreement.

dntbnmpls 7y ago

> Remember that Elon agreed to have his tweets reviewed by Tesla's in-house counsel in lieu of formal SEC action after he lied about taking the company private. He said he could've taken it private at $420. Tesla is trading over $800 today. So he probably wasn't lying. > Something legal would never allow him to say, especially if he is on the verge of exercising options. If he were exercising his options, he wouldn't want the share prices to drop. > My bet is the SEC isn't going to tolerate this behavior anymore, and he won't be at the helm of any of his companies by the end of the year. He will be just plain poor. People like you have been saying this for years. I remember the haters/journalists/etc claiming tesla was going to go bankrupt, SEC was going to remove musk, the "pedo guy" was going to ruin Musk, etc. If you want a good laugh read the article and the comments. It's amazing how little journalists know about anything and how wrong online commenters tend to be. "Is Elon Musk trying to commit ‘suicide by SEC’ by taunting the agency?" https://news.ycombinator.com/item?id=19259911 https://news.ycombinator.com/item?id=19259911 There are dozens more if you feel like searching.