The SEC has finally come out of hiding and formally charged Tesla CEO, Elon Musk, with Securities Fraud.
But do they have the backbone to make the charges stick, or is it simply a flexing of their atrophied disciplinary muscle?
Hopefully we’ll find out sooner than later.
Usually, the SEC won’t go after anyone (at least not a “favorite-son” of the government cronies like Musk) unless they have a pretty strong case against them.
Musk, well known as a “loose cannon,” has been digging his own grave with remarkably stupid Tweets and pathological lies about anyone and anything that rubs him the wrong way.
What’s crazy is his arrogance against any critic (including the SEC) is mind-boggling. (Especially when you consider how Tesla has failed to make a penny and has been burning through Billions of dollars for years).
We first wrote about it (HERE).
Musk’s current line of defense is that the SEC’s “reasoning is flawed” in thinking that a written agreement and fixed price were necessary to get a proposed $70 billion plus go-private deal done.
The deal would have been the largest buyout in history. Musk also reportedly didn’t think that regulators were considering that Saudi businesses have a history of using “verbal agreements in principle”.
Saudi’s using “Verbal Agreements in Principle.”
Let me sum it up for you.
Egomaniac Musk was tired of short sellers putting pressure on his stock (that’s been burning through cash like a forest fire and not producing cars on schedule…combined with less demand from consumers).
So, he announces a buy-out from the Saudis at a “premium price of $420 per share.” (linked to a marijuana reference of 420)
The shorts get crushed and Musk gloats while smoking pot live on a podcast.
Should he go to jail?
Will he go to jail?
Why? He’s a government funded crony who won’t think twice about screwing his shareholders as Tesla’s stock gets destroyed in the process.