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In his latest TED interview [0], Musk said that he had the funding secured for that Tesla private offering. He said that he needed to settle with the SEC so tha

by shafyy 5y ago

In his latest TED interview [0], Musk said that he had the funding secured for that Tesla private offering. He said that he needed to settle with the SEC so that they wouldn't freeze Tesla's bank accounts, and as part of the settlement he needed to publicly say that he hadn't secured funding. I don't think he's lying. 0: https://www.youtube.com/watch?v=cdZZpaB2kDM https://www.youtube.com/watch?v=cdZZpaB2kDM

hef19898 5y ago
Why would the SEC block Tesla accounts? The SEC is imposing fines. I call Musks statement a lie.
- shafyy 5y ago
  I probably didn't get the wording right (just paraphrased from memory). But watch the TED interview I linked to get more info.
_fizz_buzz_ 5y ago
That sounds super dubious, the SEC forced him to publicly lie in a settlement? Sorry, I am not buying it. You would have to put at least a dozen SEC lawyers on suicide watch after such a deal. And not only did they force him to lie in a settlement, now he suddenly breaks what he agreed to in that settlement without any consequences, so what was that settlement worth to begin with.
- cloutchaser 5y ago
  Yes, it sounds plausible, because if Tesla is threatened by certain SEC sanctions or legal troubles, banks could withdraw funding or raise interest rates on Tesla's debt, which would bankrupt the company. Or insurance companies could raise premiums or refuse to insure the company which again - could lead to catastrophe. This is what Elon is saying and it sounds like a perfectly plausible scenario, under which you'd rather avoid the conflict and just shut up and sign and pay the fine.
  - _fizz_buzz_ 5y ago
    It sounds plausible to you that SEC lawyers drew up a settlement that forced Musk to lie publicly about the funding situation of taking TSLA private? This would open up that lawyer for all sorts of criminal and private lawsuits and that poor guy doesn't even have anything personally to gain from forcing Musk to lie. Sorry, those are ludicrous allegations.
    - cloutchaser 5y ago
      The SEC isn't forcing anything, as such, but public information about being investigated for something like this, in a public company, might well affect the market's willingness to lend to you. Musk has also said he is going to launch legal action on this. Because that's almost exactly what happened, and it is unfair. So you are correct, and this saga probably still has more to go. What's funny is almost anyone on the planet couldn't go up against someone like the SEC, which is why they can get away with this. Good on Musk for doing it.
    - hef19898 5y ago
      This discussion shows how far Musk's anti-SEC propaganda had taken effect. As far as I know (I could be mistaken, and too lazy to investigate that further), but the SEC doesn't have the power to block bank accounts of companies over illegal things shareholders or officers of the company did. That's how this discussion started: The SEC blackmailed Musk into signing a settlement or otherwise the SEC would block Tesla's accounts. Well, it's either that or Musk, in fact, did lie about the funding to take Tesla private. reasonable people believe the latter, other prefer option one. And then people still wonder were Tesla's evaluation comes from.
      - cloutchaser 5y ago
        How did bank accounts come into this? There was never any discussion about bank accounts. It's about financing of Tesla's debt. That's something that banks do, and banks could deny funding (even of a bank overdraft) for almost any reason really, like an SEC lawsuit. No-one ever talked about any bank account being blocked. But in a world of debt, where debt is provided by institutions, if you can control who gets loans, you can control a lot.
- barnabee 5y ago
  And the alternative is what? The SEC is an altruistic, diligent protector of consumers and investors? lol It is hard to look at the SEC’s most public actions in the last few years and not believe Musk here.
- toomim 5y ago
  No, the banks forced him to settle. It wasn't the SEC. Watch the video. The banks didn't want a liability. The SEC disagreement was going to take too much time to resolve legitimately. If he didn't please the banks they wouldn't give him funding.

by shafyy 5y ago

hef19898 5y ago

Why would the SEC block Tesla accounts? The SEC is imposing fines. I call Musks statement a lie.

shafyy 5y ago
I probably didn't get the wording right (just paraphrased from memory). But watch the TED interview I linked to get more info.

_fizz_buzz_ 5y ago

That sounds super dubious, the SEC forced him to publicly lie in a settlement? Sorry, I am not buying it. You would have to put at least a dozen SEC lawyers on suicide watch after such a deal. And not only did they force him to lie in a settlement, now he suddenly breaks what he agreed to in that settlement without any consequences, so what was that settlement worth to begin with.

cloutchaser 5y ago
Yes, it sounds plausible, because if Tesla is threatened by certain SEC sanctions or legal troubles, banks could withdraw funding or raise interest rates on Tesla's debt, which would bankrupt the company. Or insurance companies could raise premiums or refuse to insure the company which again - could lead to catastrophe. This is what Elon is saying and it sounds like a perfectly plausible scenario, under which you'd rather avoid the conflict and just shut up and sign and pay the fine.
- _fizz_buzz_ 5y ago
  It sounds plausible to you that SEC lawyers drew up a settlement that forced Musk to lie publicly about the funding situation of taking TSLA private? This would open up that lawyer for all sorts of criminal and private lawsuits and that poor guy doesn't even have anything personally to gain from forcing Musk to lie. Sorry, those are ludicrous allegations.
  - cloutchaser 5y ago
    The SEC isn't forcing anything, as such, but public information about being investigated for something like this, in a public company, might well affect the market's willingness to lend to you. Musk has also said he is going to launch legal action on this. Because that's almost exactly what happened, and it is unfair. So you are correct, and this saga probably still has more to go. What's funny is almost anyone on the planet couldn't go up against someone like the SEC, which is why they can get away with this. Good on Musk for doing it.
  - hef19898 5y ago
    This discussion shows how far Musk's anti-SEC propaganda had taken effect. As far as I know (I could be mistaken, and too lazy to investigate that further), but the SEC doesn't have the power to block bank accounts of companies over illegal things shareholders or officers of the company did. That's how this discussion started: The SEC blackmailed Musk into signing a settlement or otherwise the SEC would block Tesla's accounts. Well, it's either that or Musk, in fact, did lie about the funding to take Tesla private. reasonable people believe the latter, other prefer option one. And then people still wonder were Tesla's evaluation comes from.
    - cloutchaser 5y ago
      How did bank accounts come into this? There was never any discussion about bank accounts. It's about financing of Tesla's debt. That's something that banks do, and banks could deny funding (even of a bank overdraft) for almost any reason really, like an SEC lawsuit. No-one ever talked about any bank account being blocked. But in a world of debt, where debt is provided by institutions, if you can control who gets loans, you can control a lot.
barnabee 5y ago
And the alternative is what? The SEC is an altruistic, diligent protector of consumers and investors? lol It is hard to look at the SEC’s most public actions in the last few years and not believe Musk here.
toomim 5y ago
No, the banks forced him to settle. It wasn't the SEC. Watch the video. The banks didn't want a liability. The SEC disagreement was going to take too much time to resolve legitimately. If he didn't please the banks they wouldn't give him funding.