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Musk holds his gun against his head and threatens to shoot if the SEC presses too hard




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Tesla CEO and co-founder Elon Musk has until March 11 to explain to a federal judge in New York why he did not violate the terms of his agreement with the SEC in October 2018.Robyn Beck-Pool / Getty Images

During the Greek debt crisis, I remember having a laugh in an editorial caricature that I unfortunately can not find today.

It showed a man standing with a rifle in his head, carrying a sign indicating "Greece" and an invading European Union. He summed up the moment, namely that Greece was having problems, largely due to her fault, but that to remove him from the union or compel him to default on his debts would be a disaster for Europe and Europe. would guarantee the other countries would not be reimbursed. Of course, Greece would suffer as well.

Now, replace Greece with Elon Musk in this caricature and instead of the European Union, the Securities and Exchange Commission. (I tried to draw my own drawing and it did not go well).

Musk is asking the SEC to fire him as CEO of the electric car maker, Tesla, which could shatter Tesla's stock, paralyze the company and hurt a lot of retail investors who love the company. altar of Musk.

the strong test is linked to Musc's continued use of Twitter to make statements that may not be true … and that could also alter the value of the shares.

On February 19, he had sent a seemingly innocuous tweet in which he was surprised to go from zero car made in 2011 to 500,000 in 2019. The only problem is that shortly before, investors had forecast 400,000 forecasts for 2019. He then followed this tweet with a covering tweet that said 500,000 were related to the current production rate at the end of the year. It was too late at that time. The SEC saw an opportunity to ask if anyone had approved this erroneous tweet – a condition of its settlement with the SEC for misleading investors on the plan to privatize Tesla.

It turns out that this first tweet was not approved by the Twitter police inside Tesla. And the SEC has asked a New York judge to sentence him for contempt of a court order from October 2018. In that settlement, Musk was expelled from his presidency, fined $ 20 million and to tweet validation for tweets he made in August, saying he was considering privatizing Tesla and getting funding.

I speculate, but I think it's extremely unlikely that the SEC would have been interested in this last tweet, except that Musk had already proclaimed in "60 Minutes" in December that "I do not respect the SEC".

And I think Musk does not respect the SEC because it sees itself as a nuclear missile, ensuring mutual destruction, forcing the SEC to destroy a company that has been surprisingly successful simply because it's irritated by & nbsp ; its iconoclastic CEO. . His fans on Twitter see him as an unfair persecutor, even if that same behavior on the part of another CEO would provoke the same reaction or a worse reaction on the part of the SEC.

If you read Tesla's securities deposits, you will find that Musk itself is a risk factor – lose it – and it is common knowledge that the market value of Tesla, which stood at 314.74 $, up 5.7% Wednesday, is related to his personal contribution to the company. In his last deposit 10K, the company said:

We are very dependent on the services of Elon Musk, our general manager.

We are very dependent on the services of Elon Musk, our managing director and principal shareholder. Although Mr. Musk spends a lot of time with Tesla and is very active in our management, he does not devote all his time and attention to Tesla. Mr. Musk is also Chief Executive Officer and Technical Director of Space Exploration Technologies Corp., Developer and space launcher manufacturer and participates in other emerging technology companies.

Musk knows it and has dared the SEC and even his board to fire him.

Elon Musk via Twitter

This is the kind of thing that only someone like Musk can do. He is no longer president of Tesla, but that does not matter. He retains his seat on the board of directors and most members, even the so-called "independent" seat holders, are friends or have links with him. In addition, he holds about 20% of Tesla's shares and, if he is not a majority, it would require a concerted revolt of the great funds to counter his influence.

Musk said that there would be "news" Thursday at 2 pm. Pacific and changed his Twitter account to "Elon Tusk". Maybe we will know if Musk pulled the trigger or if the SEC – like the European Union with Greece – managed to negotiate an agreement again.

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Tesla CEO and co-founder Elon Musk has until March 11 to explain to a federal judge in New York why he did not violate the terms of his agreement with the SEC in October 2018.Robyn Beck-Pool / Getty Images

During the Greek debt crisis, I remember having a laugh in an editorial caricature that I unfortunately can not find today.

It showed a man standing with a rifle in his head, carrying a sign indicating "Greece" and an invading European Union. He summed up the moment, namely that Greece was having problems, largely due to her fault, but that to remove him from the union or compel him to default on his debts would be a disaster for Europe and Europe. would guarantee the other countries would not be reimbursed. Of course, Greece would suffer as well.

Now, replace Greece with Elon Musk in this caricature and instead of the European Union, the Securities and Exchange Commission. (I tried to draw my own drawing and it did not go well).

Musk is asking the SEC to fire him as CEO of the electric car maker, Tesla, which could shatter Tesla's stock, paralyze the company and hurt a lot of retail investors who love the company. altar of Musk.

The clash is related to Musk's continued use of Twitter to make statements that may not be true … and that could also displace the value of the shares.

On February 19, he sent a seemingly harmless tweet in which he was wondering about the incredible feat of moving from zero car produced in 2011 to 500,000 by 2019. The only problem is that shortly before, in investor documents, the forecast for 2019 was 400,000. He then followed this tweet with a covering tweet that said 500,000 were related to the current production rate at the end of the year. It was too late at that time. The SEC saw an opportunity to ask if anyone had approved this erroneous tweet – a condition of its settlement with the SEC for misleading investors about a privatization project for Tesla.

It turns out that this first tweet was not approved by the Twitter police inside Tesla. And the SEC has asked a New York judge to sentence him for contempt of a court order from October 2018. In that settlement, Musk was expelled from his presidency, fined $ 20 million and to tweet validation for tweets he made in August, saying he was considering privatizing Tesla and getting funding.

I speculate, but I think it's extremely unlikely that the SEC would have been interested in this last tweet, except that Musk had already proclaimed in "60 Minutes" in December that "I do not respect the SEC".

And I think Musk does not respect the SEC because he sees himself as a nuclear missile, ensuring mutual destruction, challenging the SEC to destroy a company that was surprisingly successful simply because its iconoclastic CEO was irritating it. His fans on Twitter see him as an unfair persecutor, even if that same behavior on the part of another CEO would elicit the same reaction or a worse reaction from the SEC.

If you read Tesla's securities deposits, you will find that Musk itself is a risk factor – lose it – and it is common knowledge that the market value of Tesla, which stood at 314.74 $, up 5.7% Wednesday, is related to his personal contribution to the company. In its most recent 10K filing, the company said:

We are very dependent on the services of Elon Musk, our general manager.

We are very dependent on the services of Elon Musk, our managing director and principal shareholder. Although Mr. Musk spends a lot of time with Tesla and is very active in our management, he does not devote all his time and attention to Tesla. Mr. Musk is also Chief Executive Officer and Technical Director of Space Exploration Technologies Corp., Developer and space launcher manufacturer and participates in other emerging technology companies.

Musk knows it and has dared the SEC and even his board to dismiss him.

This is the kind of thing that only someone like Musk can do. He is no longer president of Tesla, but that does not matter. He retains his seat on the board of directors and most members, even the so-called "independent" seat holders, are friends or have links with him. In addition, he holds about 20% of Tesla's shares and, if he is not a majority, it would require a concerted revolt of the great funds to counter his influence.

Musk said that there would be "news" Thursday at 2 pm. Pacific and changed his Twitter account to "Elon Tusk". Maybe we can find out whether Musk fired or whether the SEC – like the European Union with Greece – managed to negotiate an agreement again.


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