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This assumes he was serious about it at some point, instead of just cover to sell more Tesla shares and free marketing for himself.
by tempsy 4y ago
This assumes he was serious about it at some point, instead of just cover to sell more Tesla shares and free marketing for himself.
- labster 4y agoGosh, I hope he was serious at the point he signed a contract with a $1B penalty, or else he’s the world’s worst businessman.
- shakow 4y ago> or else he’s the world’s worst businessman. According to this hypothesis, he would still walk out with 7.5B in hard cash instead of 8.5B in Tesla share. I'm not in his boots, but I see how it can be seen as worth it.
- ImPostingOnHN 4y agoassuming he can come up with a convincing case that twitter made material lies, otherwise he walks out owning twitter for the cost specified in the contract
- atlasunshrugged 4y agoUnless he thought he could be a big enough pain in the ass that Twitter folks would rather walk away from the deal and let him skate with a few million penalty while he liquidates Tesla stock with little repercussion to the share price (unfortunately for him, the market tanked in the interim and now his deal is an absolutely amazing one for Twitter shareholders so no way they let him walk away, $1B penalty isn't even an option as this was about outside interference)
- jiggawatts 4y agoIf you want to move $40B, this is just a two percent transaction fee to avoid losing $200B by spooking the public investors. That’s smart.
- Hamuko 4y agoI was under the assumption that he was not financing that $40B with just Tesla stock?
- chx 4y agoHe was funding it with loans leveraged against his stock if I understand this correctly.
- shuckles 4y agoIf that was his intent, it's fraud and has (in theory) criminal penalties.
- Hamuko 4y agoJudging by his dealings with the SEC, I don't feel like he respects the law all that much.
- jacquesm 4y agoI don't think the SEC cares very much what Elon respects or not, if they can nail him they will.
- camjohnson26 4y agoI think they’ve clearly shown that’s not true ever since they tried to take him back to court for clearly not having his tweets pre approved, despite the settlement over the “funding secured” tweet. The man literally tweeted “Tesla stock is too high right now, imo” and nothing happened.
- jacquesm 4y agoI see some difference between tweeting stuff and signing binding agreements for purchase and using stock as collateral at a particular valuation.
- jacquesm 4y agoNot necessarily. That all depends on what he gained in return. Unless of course he ends up going to jail for fraud. It took a lot less for Martha Stewart.
- ClumsyPilot 4y agoI would like the consequences of his actions to catch up with him. A Joe Boggs acting in this fgashion would have been taken to the cleaners long ago.