[Updated w/ Elon's statement] Tesla CEO Elon Musk dragged to court by SEC for Fraud

[Master Disaster]

2 hours ago, yian88 said:

This case will be closed very fast due to the fact that a tweet has no legality.  If a CEO of any company says stupid things on social media that arent the company's official/legal decisions he may be fired as CEO for poor behaviour but cant be sued for fraud thats a stretch of the law.

In case of Musk they cant fire him. I think Musk needs some time off to cool his head and to be brought back on earth from his Mars mental adventures.

Quote

"A chairman and CEO of a public company has important responsibilities to shareholders," Stephanie Avakian, co-director of the SEC's division of enforcement, said during the press conference. "Those responsibilities include the need to be scrupulous and careful about the truth and accuracy of statements made to the investing public, whether those statements are made in traditional forms such as a press release or an earnings call or through less formal methods such as Twitter or other social media."

The SEC disagree with you on that one.

 

It's against the rules to knowingly make an inaccurate statement to the public that might have an impact on the companies share price. The rules are there to protect the public from companies affecting share prices by making inaccurate statements.

 

By doing this the SEC will argue Elon attempted to defraud his shareholders by deliberately making statements he knew were inaccurate in order to manipulate his own companies share price.

[laminutederire]

2 hours ago, yian88 said:

This case will be closed very fast due to the fact that a tweet has no legality.  If a CEO of any company says stupid things on social media that arent the company's official/legal decisions he may be fired as CEO for poor behaviour but cant be sued for fraud thats a stretch of the law.

In case of Musk they cant fire him. I think Musk needs some time off to cool his head and to be brought back on earth from his Mars mental adventures.

Why not? It has even legality than a testimony of someone saying he said it privately. Except in this case it could have influenced financial markets.

[Sauron]

15 hours ago, BuckGup said:

Do they have evidence outside of a tweet? Is a tweet even legal to say that person said it because anyone could have posted that from his account. If he would have come out on stage in front of an audience and news and said we are going private that's another thing. I don't know how this legally works though

It's his account, if he didn't write it he should at least have publicly denied it.

[Syntaxvgm]

I had a very relevant comment about the SEC being pedos, and it was silently deleted. 
He will say its a witch hunt in some form though. 

[ItsMitch]

5 minutes ago, Syntaxvgm said:

He will say its a witch hunt in some form though. 

I don't think Elon is as bad as.... him....

[Syntaxvgm]

6 minutes ago, SC2Mitch said:

I don't think Elon is as bad as.... him....

That press conference...holy shit I watched the whole insane thing when it happened. If you haven't seen it all, you owe it to yourself. The quotes being reported aren't even the best parts, there was simply too much to report. Just an hour and a half of pure insanity- is this is coming from a guy that thinks a lot of anti-trump crap is also fake. 

This guy is nuts. 

[lacion]

the gameplan

 

1. Elon removed as CEO by SEC order - can’t be CEO of a public company

2. Tesla stock drops 50%

3. Tesla stock becomes so cheap they take it private

4. Musk reinstated as CEO

 

(credit: @danielgross and @collision)

it definitely looks like Elon is playing a bigger game.

 

[Syntaxvgm]

2 minutes ago, lacion said:

the gameplan

 

1. Elon removed as CEO by SEC order - can’t be CEO of a public company

2. Tesla stock drops 50%

3. Tesla stock becomes so cheap they take it private

4. Musk reinstated as CEO

 

(credit: @danielgross and @collision)

it definitely looks like Elon is playing a bigger game.

 

lol the pedo comments and doubling down are all about the price manipulation. 4d space chess. 

[ItsMitch]

Added Elon's statement to CNBC

Quote

 

"This unjustified action by the SEC leaves me deeply saddened and disappointed," Musk said in a statement to CNBC. "I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."

 

 

[CoffeeBlack]

5 hours ago, yian88 said:

This case will be closed very fast due to the fact that a tweet has no legality.  If a CEO of any company says stupid things on social media that arent the company's official/legal decisions he may be fired as CEO for poor behaviour but cant be sued for fraud thats a stretch of the law.

In case of Musk they cant fire him. I think Musk needs some time off to cool his head and to be brought back on earth from his Mars mental adventures.

Yeah, you need to maybe educate yourself a little more on the subject before making comments like this. 

[Monkey Dust]

20 hours ago, lacion said:

the gameplan

 

1. Elon removed as CEO by SEC order - can’t be CEO of a public company

2. Tesla stock drops 50%

3. Tesla stock becomes so cheap they take it private

4. Musk reinstated as CEO

 

(credit: @danielgross and @collision)

it definitely looks like Elon is playing a bigger game.

 

Except such weapons grade manipulation would get all involved a jail term. Unless the drastic drop in share price meant they were unable to refinance their debt and as a result there was no Tesla to take private any more. If this is a game it's Russian roulette with 5 chambers loaded, while sitting on a land mine.