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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 Tes

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_ 4y 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 4y 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 4y 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 4y 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.
    - hef19898 4y 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. Citing from like three levels of comment up-stream.

_fizz_buzz_ 4y 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 4y 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 4y 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 4y 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.
  - hef19898 4y 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. Citing from like three levels of comment up-stream.