What would be the argument in his defense?
Lawyer.
SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
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Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#12This comment I made a few weeks ago is coming alot closer to the truth than I would have expected. I hope for Space X and Tesla's sake that the reports of a directory and Executive ban don't come true. https://news.ycombinator.com/item?id=18016250#18016292 SpaceX is doing well, Tesla has pulled itself back from the brink and may actually become a profitable car company. All Elon had to do was keep his head down and n…
You say the shorts don't have any power to hurt tesla, but much of tesla's and elon musk's personal debt is backed by Tesla shares. If the price dips too low, it's potentially catastrophic for the company and him.
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#13I'm willing to bet the only thing that will come of this is a fine and a slap on the wrist.
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#14Twitter is like keeping a loaded gun in the house with kids. Politicians, Business leaders, community influencers... BEWARE
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This isn't really the context here. It's a tweet from 10 years ago. He wrote a tweet, lying about having secured funding to take Tesla private, even giving the weird price of $420. His tweet was not taken out of context or misconstructed, he did this tweet very willingly and this tweet meant exactly what he wanted it to say.
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#15A short while ago (per my comment history), I asked whether Elon Musk should remain as CEO of Tesla.
I think, for my part, the answer is clearly no. He might be brilliant, he has undeniably had a hand in creating something awesome with Tesla and SpaceX's technology, but he's now a danger to the very thing he helped build. This is just one of the lawsuits filed against him or Tesla in recent weeks that have him as the primary cause. I want Tesla's mission to be achieved, I want them to succeed, and to me, Elon Musk is one of the biggest stumbling blocks in their way now.
Where does the buck stop? In my opinion, with Tesla's board, and Elon's ouster as CEO.
Edit: Worth noting that Elon's removal as CEO is one of the remedies the SEC seeks as well, and could thus be part of any settlement. (I'm not knowledgeable enough to handicap how likely that is.)
Another edit: Tesla has no D&O insurance, and therefore might be liable for whatever misconduct Elon is found to have done. That's a pretty big deal, and also a bad move on Tesla's part in not insuring against their (known quantity loose cannon) CEO. See https://www.dandodiary.com/2018/08/articles/securities-litig...
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#16I'm willing to bet the only thing that will come of this is a fine and a slap on the wrist.
...and irrepairable loss of investor trust
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#17SEC wants to remove him from the head of the company: https://twitter.com/kadhimshubber/status/1045407900259295233
Are there any previous examples of someone doing something similar to what Musk did and the punishments they received? I don't normally follow SEC cases, but this seems like a pretty extreme potential punishment compared to the slap on the wrist that many people were predicting.
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#18The actual complain: https://www.documentcloud.org/documents/4950588-SEC-v-Elon-M...
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#19SEC wants to remove him from the head of the company: https://twitter.com/kadhimshubber/status/1045407900259295233
damning
Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
#20SEC wants to remove him from the head of the company: https://twitter.com/kadhimshubber/status/1045407900259295233
Are there any previous examples of someone doing something similar to what Musk did and the punishments they received? I don't normally follow SEC cases, but this seems like a pretty extreme potential punishment compared to the slap on the wrist that many people were predicting.