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No, I assume buying Tesla means you’re purchasing equity in the corporation chartered under the name ‘Tesla’. If I purchase stock in the corporation ‘Solar City

No, I assume buying Tesla means you’re purchasing equity in the corporation chartered under the name ‘Tesla’. If I purchase stock in the corporation ‘Solar City’ I’d assume to be purchasing equity in that company. What I don’t assume is that my equity will be used to help a particular investor at my expense. And the second comment is a nonsensical - you’re not allowed to steal equity after you’ve reached a certain stock price. We know the exact amount of equity that was alleged to be taken (13 billion), you don’t get to hand-wave that amount away because you like the person alleged to have taken it.

ajross 5y ago
You're right in principle, but in practice... Companies buy shares in each other all the time. Strategic investments are the rule, not the exception. And like all investments, some work out and some don't. The burden of proof that must be cleared here isn't whether or not the Tesla board had the authority to supervise the Solar City purchase. As you point out, of course they did. It's their company; they represent the shareholders. But what has to be shown here is that the board was coerced into approving a deal they knew to be bad, and that they weren't merely wrong (just like Musk) about an investment deal. And absent some kind of smoking gun evidence, that's an outrageously high bar. This suit is going nowhere.
ipspam 5y ago
I would disagree a bit. If I bought Tesla, I would be buying it because of the visionary leadership and direction of the company and that leadership reaching into the future to build a vertically integrated battery/car/home power generation. Each piece of the puzzle is worth money. All three parts together complimenting one another are worth all the money. I think Elon should be able to push his board around to some degree, but more to the point, he should be able to make bets about the future. That's what Telsa is about, betting on the future.
tata71 5y ago
If you bought a moderate amount of TSLA, and didn't know Musk has been folding every dime he has on paper into itself since the PayPay days, then you missed about a half, or full day of due diligence.

ajross 5y ago

You're right in principle, but in practice... Companies buy shares in each other all the time. Strategic investments are the rule, not the exception. And like all investments, some work out and some don't. The burden of proof that must be cleared here isn't whether or not the Tesla board had the authority to supervise the Solar City purchase. As you point out, of course they did. It's their company; they represent the shareholders. But what has to be shown here is that the board was coerced into approving a deal they knew to be bad, and that they weren't merely wrong (just like Musk) about an investment deal. And absent some kind of smoking gun evidence, that's an outrageously high bar. This suit is going nowhere.

ipspam 5y ago

I would disagree a bit. If I bought Tesla, I would be buying it because of the visionary leadership and direction of the company and that leadership reaching into the future to build a vertically integrated battery/car/home power generation. Each piece of the puzzle is worth money. All three parts together complimenting one another are worth all the money. I think Elon should be able to push his board around to some degree, but more to the point, he should be able to make bets about the future. That's what Telsa is about, betting on the future.

tata71 5y ago

If you bought a moderate amount of TSLA, and didn't know Musk has been folding every dime he has on paper into itself since the PayPay days, then you missed about a half, or full day of due diligence.