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SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

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Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#71

Post by djakjxnanjak »

privateSFacct wrote: post #36
spectramax wrote: post #3

At this point, the board of directors should just demand deletion of his Twitter account. I admire Elon for his vision, and actually also admire his radical style despite of its unpopular image - I watched the video where he smoked pot on the radio show. It was a really amazing conversation about future of humanity. He just needs to stop tweeting. You may say it’s fixing the symptom, but here if we take Twitter away,…

He doesn't need to delete it, but if he is going to post market moving information (like production for 2019 is not 400K but 500K) he'd get the approved by someone else like Tesla's GC.

It seems like Elon lacks the ability to control his behavior when he can tweet based on a momentary impulse. Elon has many bright ideas but not every notion of his is appropriate for public consumption. He ought to hand over the credentials to a PR or even a law firm so he can send all his tweets through them. And ask them to change the password.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#72

Post by c3534l »

mlindner wrote: post #43
grigjd3 wrote: post #38

Earlier quoted context omitted.

I mean, I'm fairly certain that if I started publicly bad-mouthing my company and they noticed, I'd be canned.

Canned by the company yes, not canned by the government.

The parent comment says "Can a corporation demand an employee ..." so that's exactly what we're talking about. The company, not the government.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#73

Post by SatvikBeri »

simplicio wrote: post #42
privateSFacct wrote: post #28

Earlier quoted context omitted.

Not if that person has posted: 1) MAJOR false market moving information regarding a buyout with funding committed that both never happened and turned out to be basically hot air to get back at shorts 2) AGREED to pre-approval of tweets about tesla so that "mistakes" wouldn't happen again 3) Promptly tweaks another FALSE and market moving prediction about 2019 production (500K), which almost immediately leads to the r…

"One alternative - have Elon pay out of pocket to all the sorts and anyone else who losses money acting on his tweet addiction." Isn't that what happened last time? Elon basically had to pay off investors who lost money due to the stock swings caused by his tweeting BS?

No – Musk got a slap on the wrist ($20MM) compared to the market movement he caused, and none of that money goes to investors. The tweet moved Tesla's stock by $30/share, or temporarily added over 4 billion dollars to its market cap.

It wouldn't really be possible to determine exactly who was damaged by his tweets, so no direct restitution is possible.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#74

Post by bytematic »

minimaxir wrote: post #69
blhack wrote: post #64

My knowledge of how publicly traded companies work is very limited, but: Was what he said really that bad? He said: >Tesla made 0 cars in 2011, but will make around 500k in 2019 And then later corrected himself with: >Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k. This seems like a pretty simple mistake to have made,…

> This seems like a pretty simple mistake to have made Elon Musk is the head of a public corporation, not a random Twitter user.

Making him immune to mistakes?

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#75

Post by blhack »

minimaxir wrote: post #69
blhack wrote: post #64

My knowledge of how publicly traded companies work is very limited, but: Was what he said really that bad? He said: >Tesla made 0 cars in 2011, but will make around 500k in 2019 And then later corrected himself with: >Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k. This seems like a pretty simple mistake to have made,…

> This seems like a pretty simple mistake to have made Elon Musk is the head of a public corporation, not a random Twitter user.

He's a human being who also happens to be the head of a public corporation. We can't expect every single action he takes at every point to be filtered into legalese.

IMO, if he had said this in an earnings call, or presented it in a way that made it seem "official", then I could get the problem, but it's twitter.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#76

Post by empath75 »

bytematic wrote: post #74
minimaxir wrote: post #69

Earlier quoted context omitted.

> This seems like a pretty simple mistake to have made Elon Musk is the head of a public corporation, not a random Twitter user.

Making him immune to mistakes?

There’s a reason lawyers vet public statements by corporate officers.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#77

Post by [deleted] »

berberous wrote: post #44
minimaxir wrote: post #4

SEC filing: https://www.documentcloud.org/documents/5750664-Show-Cause.h...

The last two pages (pp. 11 and 12) are a great example of why you shouldn't be an arrogant dumbass towards the government. The SEC quotes his 60 minutes interview with Leslie Stahl where he says he doesn't respect the SEC. While I think the SEC has a legitimate grievance here, I'm also guessing this is partly vindictive. Play stupid games... And I say all that as a big supporter of Elon generally.

[deleted]

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#78

Post by na85 »

bytematic wrote: post #74
minimaxir wrote: post #69

Earlier quoted context omitted.

> This seems like a pretty simple mistake to have made Elon Musk is the head of a public corporation, not a random Twitter user.

Making him immune to mistakes?

Making him responsible for mistakes.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#79

Post by empath75 »

blhack wrote: post #75
minimaxir wrote: post #69

Earlier quoted context omitted.

> This seems like a pretty simple mistake to have made Elon Musk is the head of a public corporation, not a random Twitter user.

He's a human being who also happens to be the head of a public corporation. We can't expect every single action he takes at every point to be filtered into legalese. IMO, if he had said this in an earnings call, or presented it in a way that made it seem "official", then I could get the problem, but it's twitter .

According to the company his twitter feed is an official source of information about the company.

Re: SEC Asks Manhattan Federal Court to Hold Elon Musk in Contempt

#80

Post by detaro »

blhack wrote: post #64

My knowledge of how publicly traded companies work is very limited, but: Was what he said really that bad? He said: >Tesla made 0 cars in 2011, but will make around 500k in 2019 And then later corrected himself with: >Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k. This seems like a pretty simple mistake to have made,…

The legal point isn't if what he tweeted was "that bad" or not. It's that after he got caught the last time, in the settlement to end the case he agreed to have Tesla legal review all such tweets in the future to make sure he doesn't do it again. He broke that agreement.
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