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> The SEC asked the U.S. District Court of the Southern District of New York to permanently bar him from acting as an officer at a company that issues securities, to disgorge all ill-gotten gains and pay a fine Prison? Where is the prison part?
Earlier quoted context omitted.
This Nikola thing looks pretty weird indeed, but to be fair, Musk's name for his company is also not very original, since he (or whoever) also just took the dude's name even though he had absolutely nothing to do with him.
Tesla's name is somewhat original because the connection between electricty and Tesla is certainly obvious and understandable, yet also rare enough in the US compared to Edison that it wasn't already taken. A second company then copying exactly the same association? Different thing entirely.
How do they define fraud? Lying? Isn't every company doing this?
This should not be surprising to anyone. Arstechnica has followed Nikola's terrible and obvious fraud(s) for years now: https://arstechnica.com/cars/2021/02/nikola-admits-to-making... https://arstechnica.com/cars/2020/12/nikola-stock-craters-af... https://arstechnica.com/cars/2020/09/nikola-patented-a-stole... And many more... The speculation around this stock has been insane for many years now: https://arstechnica.c…
Financial markets are not coupled to real economics anymore. They’re coupled to speculative gamesmanship. Whoever can generate statistics to captivate the masses who do not understand them, via press releases, and media blitzes. That sounds cynical, but I “hob nob” with people invited to Davos, and run depts at Ivy League schools. Behind closed doors these are the conversations I’ve been privy too. How to captivate t…
If it's going to be good or bad for society I don't know.
I personally have most of my money on low risk stuff, and when volatility spikes I sometimes sell options in the morning before starting my day.
now do elon
Are you claiming that Tesla vehicles are fraudulent and only drive when rolling down hills?
Just before of Tesla's acquisition of Solar City (his cousin's company) they presented the Solar roof [0]. It has been reported [1] that the roof just didn't work, it didn't generate any electricity. In fact, my understanding is that even today they are having many issues with the system. How is announcing a "solar roof" that doesn't generate electricity different that announcing a truck that doesn't move?
Also, people often forget that when Nikola went mainstream, an email from Elon Musk was leaked to the press stating that Tesla was going to ramp up production of the Tesla Semi [3]. Goes without saying that the Tesla Semi has been delayed yet another year since its unveiling back in 2017.
[0] https://www.youtube.com/watch?v=4sfwDyiPTdU
[1] https://www.fastcompany.com/40422084/inside-steel-pulse-the-...
[2] https://www.fool.com/investing/2020/06/10/musk-presses-the-g...
How do they define fraud? Lying? Isn't every company doing this?
Were it a private company, like most startups at this stage tend to be, these lies would not have been securities fraud, I don't think.
IMO this would have been a negative case of misrepresentation were this a private startup, but probably not more than a single standard deviation away from the norm, at least in my admittedly fairly limited understanding of the industry.
When you're from a culture of, well, presenting the best version of the truth possible (startup world), you can get into some very hot water if you play fast and loose as a publicly traded company, and Trevor Milton is finding out.
Interesting how even after this was announced, their market cap is over $5b ( https://www.google.com/finance/quote/NKLA:NASDAQ ) in the same ballpark as established car companies like Mazda ( https://www.google.com/finance/quote/MZDAF:OTCMKTS )
I am more surprised that Mazda's market cap is only $5B. That's just about the same as Duolingo. Interesting times we live in, really.
() some may read that as sane, or trading according to fundamentals.
Interesting how even after this was announced, their market cap is over $5b ( https://www.google.com/finance/quote/NKLA:NASDAQ ) in the same ballpark as established car companies like Mazda ( https://www.google.com/finance/quote/MZDAF:OTCMKTS )
I am more surprised that Mazda's market cap is only $5B. That's just about the same as Duolingo. Interesting times we live in, really.
The other one does not.
I think you can guess which one is which.
For the record - I'm just as skeptical as many others are about tech valuations, but there is a legitimate reason to value companies they way we do, it's just not always a "its tech, so it has to be valued at BLAH", there's a lot of nuance to these businesses.
Earlier quoted context omitted.
I browse through a lot of niche investing social media groups. One of the more liked posts on a Nikola investment group was, "If "they" cared about the future, the earth and the renewable energy issue, they would let whatever Trevor did slide." Surprisingly, I saw similar posts about Musk on the Thailand rescuer tweet and the price too high tweet. You are not betting against the fundamentals or the realities of the s…
You are still betting against the product those people are building. Their sentiment doesn’t matter much when the product weak and company is committing fraud for personal gain or to bolster the promises of the product, like Thernos, most (not all of the time, by any means) of the time history has dealt with this.
This should not be surprising to anyone. Arstechnica has followed Nikola's terrible and obvious fraud(s) for years now: https://arstechnica.com/cars/2021/02/nikola-admits-to-making... https://arstechnica.com/cars/2020/12/nikola-stock-craters-af... https://arstechnica.com/cars/2020/09/nikola-patented-a-stole... And many more... The speculation around this stock has been insane for many years now: https://arstechnica.c…
Financial markets are not coupled to real economics anymore. They’re coupled to speculative gamesmanship. Whoever can generate statistics to captivate the masses who do not understand them, via press releases, and media blitzes. That sounds cynical, but I “hob nob” with people invited to Davos, and run depts at Ivy League schools. Behind closed doors these are the conversations I’ve been privy too. How to captivate t…
Hell, much of the same "speculative gamesmanship" was going on in the tech bubble of the late 90s. Just completely irrational valuations detached from reality. We ended up in a big correction.
As Benjamin Graham said several decades ago and Warren Buffett Repeats constantly "over the short-term the market is a voting machine, over the long-term it's a weighing machine"