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Eric The Tech Guru

Elon Musk to Resign as Chairman of TESLA for 3 Years and Pay Fine for SEC Violations

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Can someone explain what a chairman Vs CEO does? 


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20 minutes ago, Ben Quigley said:

Can someone explain what a chairman Vs CEO does? 

The chairman is the leader of the board, which is the group that has the most decision-making power in a publicly-traded company. Their purpose is to represent the will of the shareholders, so that the officers of the company don't do anything that furthers their own goals while putting the shareholders behind. The CEO is typically the top person when it comes to day-to-day operations of the company, but because the board has the final say, they have the power to remove the CEO if they believe he is acting out of the interest of the shareholders.

 

---

 

Also, I've seen a lot of people here saying that this has to do with Musk using Twitter to announce his plans. That's not the issue. Twitter is a perfectly valid way of making public statements about your company. The issue is that he lied while doing so. The important part is the "Funding secured" text he tacked on at the end, which was not true (he and Tesla confirmed that afterwards). Saying "We are considering buying back stock in our company for $420 and currently have the funding to do so" drives the price of Tesla stock up, since it was significantly below that value. People could buy Tesla stock for under $420 with the understanding that they would later be able to sell it at $420. However, because this was not the case (they did not have the funding), this constitutes fraud. Musk was knowingly announcing bad information, which significantly increased Tesla's stock value.

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5 hours ago, Arika S said:

so a few things here

 

Does he automatically get put back into the Director's chair after the 3 years or does he need to be re-promoted by the board?

 

image.png.736315ee21408b8a7afa250a272e7195.png

oh nooooooooooooo

iirc between him and his brother he has a majority

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Going to be interesting to see what direction Tesla will head off to now. Hope they can make some better decisions and get those model 3s out faster. Also really hope they release an electric pickup, that would be really cool


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5 minutes ago, Bananasplit_00 said:

Going to be interesting to see what direction Tesla will head off to now. Hope they can make some better decisions and get those model 3s out faster. Also really hope they release an electric pickup, that would be really cool

I get the feeling the majority of people that buy that type of vehicle would only buy it if it still had a V8 in it :P. Just hook it up to a generator to charge the batteries then you can have the V8 roar, range and the Tesla ludicrous mode acceleration :).

 

Basically a not shit Prius. 

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Just now, leadeater said:

I get the feeling the majority of people that buy that type of vehicle would only buy it if it still had a V8 in it :P. Just hook it up to a generator to charge the batteries then you can have the V8 roar, range and the Tesla ludicrous mode acceleration :).

 

Basically a not shit Prius. 

I would like the utility of a pickup, without burning shit loads of petrol or diesel, and electric vehicles have amazing torque so they make for good tow vehicles too, I think an electric pickup could sell tbh


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"Here is some advice that might have gotten lost somewhere along the way in your life. 

 

#1. Treat others as you would like to be treated.

#2. It's best to keep your mouth shut; and appear to be stupid, rather than open it and remove all doubt.

#3. There is nothing "wrong" with being wrong. Learning from a mistake can be more valuable than not making one in the first place.

 

Follow these simple rules in life, and I promise you, things magically get easier. " - MageTank 31-10-2016

 

 

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16 minutes ago, Bananasplit_00 said:

I would like the utility of a pickup, without burning shit loads of petrol or diesel, and electric vehicles have amazing torque so they make for good tow vehicles too, I think an electric pickup could sell tbh

I do actually think it's time to change how hybrids work now though, unless I'm mistaken basically all are parallel hybrid type rather than series hybrid. You get to keep the simple drivetrain and the engine/generator doesn't have to work nearly as hard so would be far more fuel efficient, and you can still plug in charge it as well.

 

It's something we have been doing for years and years (early 1900's), diesel electric trains. 

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Meanwhile the SEC didn't do jack shit to Equifax for their huge data breach and they only issued a 5 million dollar fine to their executive who was CONVICTED of insider trading...whereas Musk gets a 20 million dollar fine, Tesla gets a 20 million dollar fine as well , AND he is forced to take a 3 year hiatus all for sending a tweet. A tweet that he didn't actually do anything with, it's not like he cashed out all his stock before he made the tweet either.

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Posted · Original PosterOP
8 minutes ago, imreloadin said:

Meanwhile the SEC didn't do jack shit to Equifax for their huge data breach and they only issued a 5 million dollar fine to their executive who was CONVICTED of insider trading...whereas Musk gets a 20 million dollar fine, Tesla gets a 20 million dollar fine as well , AND he is forced to take a 3 year hiatus all for sending a tweet. A tweet that he didn't actually do anything with, it's not like he cashed out all his stock before he made the tweet either.

Even in the Tesla case it's a very minor punishment with no admission of guilt on Musk or Tesla's side.

Musk remains the CEO, he just loses some of the decision making powers he probably shouldn't have had in the first place.

 

A slap on the wrist or even less than that.

 

Equifax is worth like around $16 Billion, it also doesn't have any other serious competitors besides TransUnion and if the SEC did anything to seriously hurt Equifax, it would turn the credit market into a virtual monopoly.

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Step in the right direction.

Now the shareholders just need to kick his ass off the board and the company might have a slim chance at making a profit within the next century. (Though I don't see that happening as the shareholders have his dick shoved firmly down their throats).

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Thats a very small fine but I guess it probably covers what people have spent in such short time they had to do so.

From what people say about Chairman vs CEO it sounds like its a promotion rather than punishment :D He will be doing less work and be on the very top of decision making ?!

Regardless of what he did or intended to to, I am happy he is still going to be involved with the company so it doesnt lose its way like Apple...


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There's a theory this is exactly what he wanted to happen.

 

Elon shouts about taking Tesla private, something he cannot afford to do alone

Elon gets in trouble, fined and removed as CEO

Tesla stock prices plummet

Elon buys them all back at much reduced rate

Tesla is private again and Elon can be CEO again


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8 hours ago, Arika S said:

so a few things here

 

Does he automatically get put back into the Director's chair after the 3 years or does he need to be re-promoted by the board?

 

image.png.736315ee21408b8a7afa250a272e7195.png

oh nooooooooooooo

Net worth =/= your current funds.  That's a potential number you could get if you liquidated your assets. 


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5 hours ago, Master Disaster said:

There's a theory this is exactly what he wanted to happen.

 

Elon shouts about taking Tesla private, something he cannot afford to do alone

Elon gets in trouble, fined and removed as CEO

Tesla stock prices plummet

Elon buys them all back at much reduced rate

Tesla is private again and Elon can be CEO again

He will still be CEO, just not chairman.


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8 hours ago, leadeater said:

I do actually think it's time to change how hybrids work now though, unless I'm mistaken basically all are parallel hybrid type rather than series hybrid. You get to keep the simple drivetrain and the engine/generator doesn't have to work nearly as hard so would be far more fuel efficient, and you can still plug in charge it as well.

 

It's something we have been doing for years and years (early 1900's), diesel electric trains. 

Aren't most plug-in hybrids serial by definition?  That is, they typically run on electric power first and switch to gas only when they run out of battery.  Some performance models invoke the gas motor to maximize performance, but otherwise...

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Well, this was bound to happen (hindsight is 20/20, but you can check the previous threads about the incident :P)

 

 

16 hours ago, Brooksie359 said:

Was not expecting this. Damn I thought there wouldn't be hard enough evidence to prove anything. 

I don't understand what you mean by "enough evidence": everything he was accused of, he did in plain sight. No wonder he immediately went for a settlement, he had no other choice.

 

16 hours ago, Eric The Tech Guru said:

Yeah, Tesla is right behind GM in market cap, second largest US based and US owned auto manufacturer.

"Market cap" is the key here. When someone hears "largest car manufacturer", they probably think in terms of cars produced, a category in which Tesla certainly isn't the second largest company.

If someone discovered some revolutionary technology to make cars and started a company to develop it, he could attract a lot of funds before even producing a single car. On the other hand, very large manufacturers in terms of cars produced could have a relatively low market cap if they are in deep financial troubles or face a bleak future.

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I bet he made more with this move than the 20 million USD. He burned all short sellers. Good boy!


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3 hours ago, Selah said:

Big banks launder money and no one hats an eye. A crazy guy Send A out a tweet and everyone loses their mind

Banks have received huge fines, 100's of billions of dollars between them . The difference is bank CEOs tend to keep a low profile.

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Posted · Original PosterOP
9 hours ago, Master Disaster said:

There's a theory this is exactly what he wanted to happen.

 

Elon shouts about taking Tesla private, something he cannot afford to do alone

Elon gets in trouble, fined and removed as CEO

Tesla stock prices plummet

Elon buys them all back at much reduced rate

Tesla is private again and Elon can be CEO again

Elon is still CEO just no Chairman of the board. He doesn't get to direct the company as much but he gets to decide how to execute on the board's direction.

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10 hours ago, Bananasplit_00 said:

I would like the utility of a pickup, without burning shit loads of petrol or diesel, and electric vehicles have amazing torque so they make for good tow vehicles too, I think an electric pickup could sell tbh

RAM 1500 EcoDiesel or RAM 1500 with an eTorque module.

 

But electric vehicles have good low end torque, it only goes down as RPM goes up. Not good for towing.


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