SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal • Hacker News Board

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#271

Post by UpshotKnothole » Thu, Sep 27, 2018, 9:52 PM UTC

Animats wrote: post #246

He definitely lost it. And it's going to cost him. This is an open and shut case against Musk. He definitely sent out that tweet. Yes, maybe just not enough sleep and too many drugs. Not a good excuse. Tesla might do better with a new CEO. They're past the vision stage. Tesla's problems today are all those of running a big auto plant. Musk might do better focusing on Space-X.

At this point his biggest goal should be avoiding prison, which with the DOJ investigation and the sheer stupidity of his actions is very much on the table.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#272

Post by newsDerp » Thu, Sep 27, 2018, 9:54 PM UTC

quenstionsasked wrote: post #263

the_rosentotter wrote: post #161

Earlier quoted context omitted.

> I don't doubt he's capable of doing that with his background Which background is that? He has an undergraduate degree in economics and a bachelor's degree in physics. I respect the guy but he clearly puts a lot into managing his image. As a relevant example, he used to claim to have been in the Ph.D. program at Stanford, but had to retract that (I leave it as an exercise to the reader to find that on Google).

I'm very curious about the Stanford thing. Do you mean that he was never admitted? Or simply that he never officially enrolled? I tried my hand at googling this but found nothing but re-hashes of the same story of how he left after two days.

http://lmgtfy.com/?q=elon+musk+stanford > https://en.wikipedia.org/wiki/Elon_Musk >

  He began a Ph.D. in applied physics 
  and material sciences at Stanford 
  University in 1995 but dropped out 
  after two days to pursue an 
  entrepreneurial career.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#273

Post by jacquesm » Thu, Sep 27, 2018, 9:54 PM UTC

Animats wrote: post #246

He definitely lost it. And it's going to cost him. This is an open and shut case against Musk. He definitely sent out that tweet. Yes, maybe just not enough sleep and too many drugs. Not a good excuse. Tesla might do better with a new CEO. They're past the vision stage. Tesla's problems today are all those of running a big auto plant. Musk might do better focusing on Space-X.

I was with you right up to here:

> Musk might do better focusing on Space-X.

Maybe. As long as he does not claim the CEO slot.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#274

Post by [deleted] » Thu, Sep 27, 2018, 9:54 PM UTC

chooseaname wrote: post #121

treis wrote: post #84

>According to Musk, he calculated the $420 price per share based on a 20% premium over that day’s closing share price because he thought 20% was a “standard premium” in going-private transactions. This calculation resulted in a price of $419, and Musk stated tha the rounded the price up to $420 because he had recently learned about the number’s significance in marijuana culture and thought his girlfriend “would find…

This is to be expected; he's a manchild.

[deleted]

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#275

Post by jacquesm » Thu, Sep 27, 2018, 9:55 PM UTC

ble wrote: post #255

dwighttk wrote: post #245

Earlier quoted context omitted.

If he's banned from leading Tesla, perhaps he'll start mucking SpaceX up with his newly available attention.

I'd like to think Shotwell et. al already have a pretty well established convention as to how much Musk is allowed to intervene directly in operation and decision-making. He can pretend that he knows better than automotive engineers but I think his self-awareness is better calibrated when it comes to rocketry.

He can take the CEO slot anytime he wants, but he should not.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#276

Post by slg » Thu, Sep 27, 2018, 9:56 PM UTC

rpedela wrote: post #258

slg wrote: post #234

Earlier quoted context omitted.

From the first result [1]: >In its August 28, 2012 Complaint, the Commission alleged that, between 2005 and 2008, Wwebnet, Inc., a video software company, and Kelly made false and misleading statements and omissions to investors, including... The accusations there are repeated and occurred over the course of several years. Musk has been accused of a single case of wrong doing. Musk's seems to be a much lesser crime.…

The answer to your original question is "yes". The SEC does not like when CEOs make misleading statements even once. All I did is point you in the right direction. I am not going to go through 100s of cases to find something that is exactly like the Elon Musk case for you. You are welcome to change the Google search yourself.

You are obviously under no obligation to do research to answer my question. I wasn't expecting anyone to spend time reviewing hundreds of cases to answer my question. I frankly don't care enough about the answer to review hundreds of cases myself. I simply proposed a question towards anyone who is more familiar with SEC punishments than I am. However, if you are going to answer my question I think it is fair for me to debate the validity of that answer.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#277

Post by UpshotKnothole » Thu, Sep 27, 2018, 9:57 PM UTC

philwelch wrote: post #195

buboard wrote: post #81

Earlier quoted context omitted.

The difference with Gates and Jobs is Tesla has not delivered, i.e. it has not become profitable enough to guarantee success in the future. At this point he's indispensable. (There is also the thought that without him Tesla does not have an advantage vs cheaper competitors from all around the world)

> Tesla has not delivered, i.e. it has not become profitable enough to guarantee success in the future And based on that track record, in addition to violating security laws, you conclude that Musk is essential to the business? Strange.

I think his point is that when you strip away the personality cult, Tesla is just an unprofitable car maker with crushing debts and trouble meeting goals.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#278

Post by jacquesm » Thu, Sep 27, 2018, 9:57 PM UTC

twblalock wrote: post #36

nigealj wrote: post #25

This is a serious deal. The rest of the year is going to be a real test for Tesla! It'll be real interesting to see if they can rebound from this. I wonder if the Tesla board is thinking of doing an Uber and replace Musk with a more calmer executive! Wouldn't be surprised if he gets fired after this.

> I wonder if the Tesla board is thinking of doing an Uber and replace Musk with a more calmer executive! Wouldn't be surprised if he gets fired after this. I would be. They have stood by him so far, this isn't going to push them over the edge. Besides, who would they replace him with? If the SEC fines him, he'll pay the fine and get on with his life.

> If the SEC fines him, he'll pay the fine and get on with his life.

There are other options on the menu: jail time.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#279

Post by briatx » Thu, Sep 27, 2018, 9:57 PM UTC

mimerme wrote: post #179

Does anyone else find it amazing that these days social media posts are becoming official government documentation? Who would've thought that the very platforms where we once just shared pictures of cats are starting to run our our elections and stock markets.

Tesla made it easy for them. From the SEC filing:

> 13. On November 5, 2013, Tesla publicly filed a Form 8-K with the Commission stating that it intended to use Musk’s Twitter account as a means of announcing material information to the public about Tesla and its products and services and has encouraged investors to review the information about Tesla published by Musk via his Twitter account.

Re: SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal

#280

Post by plorkyeran » Thu, Sep 27, 2018, 9:57 PM UTC

monocasa wrote: post #269

Rooster61 wrote: post #243

Earlier quoted context omitted.

Musk wasn't a founding member of Tesla. In fact, not all of the founders of Tesla were big fans of Musk's hire. Your point is valid though, and I do think someone could go in there and take over his job effectively. That doesn't mean there won't be a period of relative instability while that transition takes place.

Everywhere I've seen says that he's a co-founder of Tesla.

Martin Eberhard and Marc Tarpenning founded Tesla. Elon Musk joined the board as part of their Series A a year later, and then became the CEO a few years after that.