SEC Lines Up To Do Battle With Tesla Over Tweets

I think this is the beginning of the end for Musk and for Tesla. This Twitter nonsense is going to be Musk's downfall just like it will degrade Trump's goals and perhaps cause more significant problems.

Because all the board members will be sued personally and because, with financial crimes, damages are calculable and become really huge really fast, there is a good chance that Tesla will start having issues with its "Directors & Officers" insurance (D&O) which is the insurance that covers liabilities that arise from the actions of the directors and officers.

If the Board is faced with losing their D&O insurance or it the costs sky-rocket, they will likely have to take action.

This is really serious.

I am shifting my "dead-pool" projections from when Tesla might have such problems that it files Chapter 11 to when Musk is removed/resigns from Tesla.

In my opinion, I think Musk is gone within 90 days.

Musk is taking all the (fair!) criticism way too personally (hmm, like someone else?) and this twitter escapade crossed the line in many ways. This might be really bad!

nothing to see here, move along citizen.
At worst it will a be wrist slap fine, which will be paid by fanboi pre-launch commits of the Tesla B.
Tesla B, its a minivan that can do launch control at <2seconds to 60mph and go to the moon.

Great point about the D&O liability insurance. Its cost however will be the least of Tesla's issues. Also on the money about the similarity in ego induced Twitter madness.

The article is clearly written by an author who is an electric car enthusiast. Ergo he pushes for a light reaction. Reading the thoughts of the financial community, they view this as a serious infraction of the SEC regs. Therefore harsh penalties. Something more along the lines of Enron or more recently Theranos, another Silicon Valley sensation. The SEC has to do something or else there will be repeats. One interesting take was a WSJ oped predicting that there is guilt but the politics will intervene and lessen any punishment.

What is forgotten in all of this is the CIVIL suits alleging losses due to his statements - which could be a Billion dollars or more. If the SEC fines him - he has no defence against these suits and will lose his personal shirt. THEN the next question is whether they determine if the Text were clearly representing HIS OWN PERSONAL statements - or that as CEO of the company. Then they can sue the company too.

As CEO of a public company Musk's job was to deliver maximum value to the shareholders and he really shit the bed with his stupid tweets and temper tantrums. Not only will the shorts sue but now Musk will face a tonne of disgruntled shareholders whom will want a pound of flesh and as I have stated earlier the BOD has got to make him walk the plank.

Too bad as I wanted to buy the battery pack for my shop as it would save me around $1K/ month in electricity costs. I don't know if Tesla will survive this latest scandal unless Musk learns to shut up and swim with cement shoes.

My personal opinion, Elon needs to be less impulsive. The plan is not bad (even though I will vote against it), he should have communicated it when things were a little more baked. I don't think they will find anything jail or even penalty-worthy, but the marketing/brand cost will easily top $1 billion.

Read their website. So far, most of my predictions have come true... wasn't Tesla supposed to go bankrupt in 2016? No that was 2017 right? Definitely 2018 though, no?