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Top Tesla in-house lawyer quits after only two months, as Elon Musk tweets incorrect statement of company production projections

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Link: https://www.smh.com.au/business/companies/elon-musk-missteps-flare-up-again-with-lawyer-s-exit-misfired-tweet-20190221-p50z79.html

 

Some background: Last year, Elon Musk tweeted out that his auto manufacturing company Tesla was able and willing to go private by buying stock back at a price of $420, when they in fact were not able to do so. This drove up the stock price for Tesla artificially, and after an investigation by the SEC, this was determined to be fraud. The resulting settlement agreement stated that Musk and Tesla would not admit fault or remove Musk as CEO, but they would remove Musk as chairman of the board (the group of people who have the ability to choose the CEO), and pay $20 million. Another part of the agreement was that Tesla would hire a securities lawyer (not the one referenced in the title of this thread) to proofread everything Musk tweets, to make sure that he doesn't commit fraud again. There is also a separate investigation on the same events by the DoJ, which is still in progress, and could potentially still find criminal charges against Musk or Tesla.

 

Recent events: Two months ago, not necessarily in relation to the SEC/DoJ investigations, Tesla hired a lawyer (Dane Butswinkas) that had previously been contracted with them, to become an official in-house legal counsel for the company. Under his contract period, he had represented Tesla while working out the settlement with the SEC, and now he was an official Tesla employee.

 

On this past Tuesday, Elon Musk tweeted out his production projections for Tesla: That they will make around 500k in 2019. Four and a half hours later, he tweeted a correction, stating that the 500k would actually be their annual production rate by the *end* of 2019, not that they would make 500k in 2019. Without the recent events surrounding this, this would not be a serious issue, as the correction was made quick enough to probably not cause financial damage to anyone. However, this could be considered evidence that they were not following their settlement agreement to proofread Musk's tweets. Two days later, Butswinkas (the lawyer they had recently hired as their top legal counsel) quit, effective immediately, and Jonathan Chang, a VP in their legal team, took over as their top legal counsel. Butswinkas is joining a staggering 24 executives who have left Tesla in 2018 or 2019, in the wake of legal and financial troubles at the company.

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Sounds like the lawyer just wasn't up to the task. Some people just can't handle the pressure of highly public positions.

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Yeah but he hosted meme review so it doesn't matter

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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I can see Tesla going the same way DMC went. If anyone knows the history behind DMC you know what I mean. 

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?? Memes ??

 

Spoiler

Something needs to happen for him to rethink all that he's doing.. hopefully it's not in the form of a bankruptcy

 

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I doubt this tweet caused this, as he also states the yearly total for 2019 will be 400k, pretty close to 500k as it is. I think it was an honest mistake and people are reading into a bit too much

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I would be sad if anything happened to Tesla. They make good vehicles and are pioneers in the electric car industry. I do think they have made electric cars quite a bit more popular. I have hope that they will continue to do so and make it possible for wide spread adoption. Also I think their self driving tech is promising as well. Autopilot seems like a very useful tool for those who drive in rush hour traffic. 

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4 hours ago, kuddlesworth9419 said:

I can see Tesla going the same way DMC went. If anyone knows the history behind DMC you know what I mean. 

nah Elon just needs to make a couple more meme reviews hell be good. 

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5 hours ago, kuddlesworth9419 said:

I can see Tesla going the same way DMC went. If anyone knows the history behind DMC you know what I mean. 

Yeah, although I do think Tesla have a bit more potential than DMC.

Unlike DMC, Tesla has brought electric vehicles and autonomous driving technology to the masses, which could save them from their demise.

Other than that, I think Elon Musk is both a blessing and a curse for Tesla. What I mean by that is he's a great inventor, is determined and has done a lot for both the automotive industry and the environment but his expectations of the company are unrealistic, both in how many cars they can produce and what they can invent.

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Tesla is fine its no worries. 

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5 hours ago, 1kv said:

Other than that, I think Elon Musk is both a blessing and a curse for Tesla. What I mean by that is he's a great innovator, is determined and has done a lot for both the automotive industry and the environment but his expectations of the company are unrealistic, both in how many cars they can produce and what they can Innovate.

Fixed.

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8 hours ago, huilun02 said:

When you tweet, you dont ask a lawyer "is this ok to tweet?" beforehand or travel to said lawyer to show whats on your phone before you hit the send button.

That's literally what Musk and Tesla agreed to, in return for not having to pay any more money, remove Musk as CEO, or potentially even have criminal charges brought up. I understand that normally this would not be an issue, hence the following, that you seem to have selectively ignored.

 

19 hours ago, kuhnerdm said:

Without the recent events surrounding this, this would not be a serious issue

 

The fact is that Musk and Tesla were in a settlement agreement with the SEC. The SEC basically says "Look, we have everything we need to formally charge you with fraud. However, we're going to be nice and not do that, as long as you agree to the following." Tesla/Musk agreed to do it, and then promptly did not do it.

 

So, in short, please don't suddenly decide that I have an agenda because you chose to ignore the parts of what I said that don't immediately agree with what you're thinking already.

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10 hours ago, huilun02 said:

Having two lawyers in the topic allows for obfuscation to insinuate that the one who quit, did so out of incompetence. If anything the raw facts prove that he actually did his job to ensure a correction was made.

I have no issue with having two lawyers in the OP, most people can count to two especially when it is clearly written that one is NOT the other (as you yourself quoted from the OP).

 

If anything, having only one lawyer in the OP without mentioning the other could result in more misunderstandings when people would come here and speculate that left because he couldn't keep up with the tweets (thinking it's one and the same lawyer responsible for proofreading).

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