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Tesla Faces U.S. Criminal Probe Over Musk Statements

bloomberg.com

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Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#5

Post by chollida1 »

The sad piece of karma in all of this is that Musk tweeted in an effort to destroy the shorts.

His tweet turned out to:

- give the shorts a big dip in his stock,

- an investigation by the SEC

- an investigation by the DOJ

- the backing off of a deep pocketed investor in the Saudis

- Him potentially being personally liable, which would mean having to step away from SpaceX and Tesla if he was found guilty of fraud.

This could be the biggest thing to come out of all of this. Imagine Elon getting a 2 year ban on begin an executive in a company. Or SpaceX not being able to bid on government contracts because their CEO is a felon.

There is going to be a lot of backroom dealing to do everything they can to prevent Elon from being charged.

- A lawsuit that is seeking class action status for anyone who was short at the time of his tweet.

- this is speculation, but it must have really strained his relationship with the board. I mean you can only fight so many battles at once, you'd think you'd want to have the board on your side

All to screw with the shorts, who really have no power what-so ever to hinder Telsa. If he had just not used twitter he and Tesla would be better off and the shorts would be worse off.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#6

Post by beaconstudios »

harryh wrote: post #4

There are a lot of things to respect about Musk. But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock. You can't do that. He should go to jail.

> But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock.

Do you have evidence of this, or is it speculation?

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#7

Post by atonse »

harryh wrote: post #4

There are a lot of things to respect about Musk. But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock. You can't do that. He should go to jail.

As sad as this makes me (because I want Tesla to be wildly successful), I have to agree. This is textbook and brazen stock manipulation, a flat out crime.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#8

Post by tomc1985 »

beaconstudios wrote: post #6
harryh wrote: post #4

There are a lot of things to respect about Musk. But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock. You can't do that. He should go to jail.

> But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock. Do you have evidence of this, or is it speculation?

If you read his rants/tweets around this time it is pretty clear he is has it in for short sellers

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#9

Post by harryh »

beaconstudios wrote: post #6
harryh wrote: post #4

There are a lot of things to respect about Musk. But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock. You can't do that. He should go to jail.

> But he lied on twitter in a direct effort to cause financial harm to people shorting Tesla stock. Do you have evidence of this, or is it speculation?

The "lied on twitter" part is now clear. He said he had funding secured for a buyout at $420 which he has now basically admitted was not true.

The "cause financial harm to people shorting Tesla stock" is a bit of speculation but it seems basically obvious to all observers.

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