If Musk enters the entertainment industry, Wang Feng will probably have to cry in the toilet. This is really a man with a hot search constitution! Tesla goes private farce, smokes pot, builds rockets, gets sued…… Musk’s been making a lot of headlines lately.
According to the New York Times, the US Securities and Exchange Commission (SEC) has formally filed a securities fraud lawsuit against Tesla CEO Elon Musk. The SEC even wants to bar Musk from serving as an officer or director of public companies, including Tesla, if he is convicted, according to the lawsuit.
That was followed by a more than 13% drop in Tesla shares in after-hours trading on Thursday. But according to foreign media Revelations, the SEC was originally prepared to reach a settlement agreement with Musk, but Musk decided to abandon the settlement at the last minute.
What a willful Boy. After all, this time the SEC suspected that Musk’s tweet about “secured funding” was false, and that musk’s move was suspected of misleading Tesla’s stock price.
After all, Musk had wanted to take Tesla private for $420 a share and claimed to have secured “financial guarantees.” Tesla shares closed the day up 10% at $380.
Musk could face jail time
On August 8, the Wall Street Journal reported that the SEC had challenged Musk’s tweet about tesla going private on a factual basis that was wrong — to obtain “funding guarantees.”
The SEC believes Musk may have violated SEC rule 14E-8, which prevents companies from making statements like Musk’s without all the necessary details. Even Musk’s tweet about taking Tesla private didn’t get a warm reception from Tesla’s board or shareholders.
The SEC was also particularly blunt, demanding that Musk pay a fine and compensate investors who were harmed by his private tweets; Order Musk to step down as CEO of Tesla and ban Musk from serving as an officer or director of any public company. Among other things, Musk must return ill-gotten gains and pay civil damages to those affected.
The snag is that before filing the suit, the SEC drafted a settlement agreement with Musk that was even approved by the agency’s top officials.
According to foreign media reports, at the last minute, Musk’s lawyer said over the phone, there is no interest in continuing to discuss a settlement agreement. The SEC then quickly filed a complaint directly against Mr Musk for securities fraud in a Court in New York.
But the SEC, for its part, is worried that Musk, who is trusted by investors as a public company executive, is not acting in the way he should be.
So the SEC acted decisively.
Mr Musk’s subsequent response was much weaker. In his view, the charges are unfair. He acted in the interests of his investors and acted in the interests of truth, transparency and investors.
Tesla shares plunged 13%
The SEC did not name Tesla as a defendant in the lawsuit.
However, Musk has previously explained that the fundamental reason he wants Tesla to go private is to create the best operating environment for Tesla.
In his view, the listed company shares will be affected by a variety of volatility and at any time, public disclosure of financial data, requiring companies must make the decision of the financial statements of the more suitable for this quarter, capital market bear attacks, these are fundamentally hurt tesla focus mission plan, and not let tesla’s work in the best state.
But Bloomberg pointed out that the price Musk proposed to take Tesla private was actually related to marijuana. The troubled CEO tweeted the 420 number in an attempt to impress his girlfriend, rapper Grimes.
The SEC’s suit has had an even worse ripple effect: Tesla shares fell about 13% in after-hours trading on Thursday, and the stock is down about 30% from its 52-week high of $387.46.
In response, Tesla issued a statement saying, “The company and the board have full confidence in Elon’s integrity and leadership, which have helped build the most successful American auto company in more than a century. Our focus remains on Model 3 production, delivery to customers, and accountability to shareholders and employees.”
The “privatisation” farce has many after-effects
Just after Musk announced he was abandoning plans to take Tesla private, a former Employee who wrote firmware and back-end code at Tesla took to Twitter. Good use of Twitter.
The Model S and Model X had serious hardware problems — Tesla “ran everything on the same bad VWare deployment in a single data center” and “Tesla’s cars weren’t nearly as safe as people thought”.
The former Employee also said tesla was doing this because the company was already losing a lot of people and was under pressure.
The revelation immediately raised concerns about the quality of the Model 3 in production.
As for the Model 3, mass production has been a big problem before it hit the road, with Tesla’s Fremont factory running below expectations.
According to people familiar with the matter, Tesla produced only 4,300 Model 3s in the week between August 24 and August 31 — not only short of its planned 6,000 a week, but far short of the 5,000 it had already achieved. For the entire third quarter, Tesla produced 34,700 Model 3s — about 60% of its planned production, which is at the limit of Tesla’s current capacity.
Tesla’s backyard is not at peace: the Justice Department did issue a request for voluntary documents; The Securities Commission filed a lawsuit against Musk; Vernon Unsworth, a British diver and speluner who owns Tesla, accused Mr Musk……
But geniuses (geeks?) After all, an old horse is still an old horse. In the words of Zhang Wei, Musk’s sky is only five words — “that’s not a matter!”
Freestyle • Musk
Ma has no sense of being a tech headliner. he doesn’t set a good example for his friends.
In early September, Musk openly drank and smoked marijuana on an American TV show.
17 days, musk’s one-man show of “Taking Tesla private.
On August 7, 2018, Musk privately tweeted that he planned to take Tesla private and that he had received “financial guarantees.”
As soon as this tweet came out, public opinion was in an uproar, with both sides praising and criticizing it. On August 24th Mr Musk tweeted a link to a blog post announcing that he had abandoned his plan to take Tesla private and that it would remain a public company.
On Aug. 7, the day Musk’s tweet was sent, trading in Tesla’s stock was halted for more than an hour at noon and closed up 10% at $380;
On Aug. 8, when the SEC questioned the factual basis of Musk’s tweet about taking Tesla private, Tesla’s stock fell, erasing some of the previous day’s gains;
Tesla shares were trading at $339 on August 14, the day tesla’s board formed a special committee to represent the company in reviewing musk’s previously announced deal to take the company private;
On August 16, the Wall Street Journal reported that SEC investigators had begun probing problems with Model 3 production a year ago, when Tesla’s shares were trading at $335.
On August 17, Tesla shares continued to fall, to $306;
Tesla shares closed at $323 on Aug. 24, before Musk made his final announcement.
Tesla shares are down 15% since the close on August 7.
For 17 days, Tesla has essentially done nothing but depreciate a lot, let’s just say — Musk. Fault!
We don’t know whether he really tried to mislead the stock market, but the incident raised a number of questions that He probably didn’t anticipate.
conclusion
In an interview with CNBC, analysts said there was only a 25% chance musk would remain CEO of Tesla in the future.
Reuters also pointed out that tesla will lose a public spokesman or mentor if musk is lost, which will be a huge shock to the company, which is still losing money.
Capital markets have long treated Tesla as a high-tech company, and its current market capitalization exceeds that of many established U.S. car companies, in large part because investors trust Musk’s leadership.
Tesla’s stock price is expected to fluctuate in the next three months, but Musk’s departure creates a perfect opportunity for the company to shake up after a series of scandals in recent years.
So can Musk stay on if the SEC strikes? Can Tesla ride out the storm? We’ll have to see what happens next.
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