Tesla in trouble again?
If you watch the financial markets, you saw that Elon Musk lied, about taking the company public for 420, in a effort to manipulate the market. Well, a judgement was handed down, costing him 20 million, and losing his seat on the board. Clearly he did not learn his lesson, because within 48 hours he emailed out that they are close to being profitable. Obviously this statement is a lot harder to prove wrong, because of the language which is ambiguous. But, the stock shot up almost 20% on that news. I have never seen a stock move so much on the CEO's word. This brings me to the point, that stock manipulation penalties might not be stiff enough. For example when he tweeted the buyout. The market cap moved billions. All he gets is a slap on the wrist, when people could have lost potential billions. We will have to see about the class action law suits coming their way.
He actually didn't lie... This whole thing is a sham. He talked to a Saudi sovereign wealth fund who told him they could take it private at $420 a share if he was interested. Elon said he was mulling that option around. Which is exactly what his tweet said... The SEC is far over-reaching in this case. How would they know who he did or didn't talk to and their interest level in taking it private?! They couldn't...
He said "secured" is where he got into trouble. Implying it was farther along in the process.
If a very wealth person, that you had a good relationship with, said they would buy your construction business if you were interested in selling to them, wouldn't you say that you had secured a buyer?!
No, not if it is not on paper, and when you have thousands of people involved in investing it must have I's dotted and t's crossed not just a conversation to be tweeted, and he also registered his tweets as news announcements. So they can fall under those guide lines.
their are many risks that a person faces when running a business.
It was a small slap on the wrist. Elon will be a tight lease and the stock has already recovered. I’m not a Tesla investor currently. I do like their products, but the stock does not have the right risk/reward right now. I would not even short or buy puts at the moment.
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Musk may be a genius and as an engineer I hope he succeeds but that being said I know whe won't get any of my money.