Musk endeavours

[odysseus2000]

Interesting 60 minute video (about 13.41 mins) that covers the Chinese electric auto market:

https://www.cbsnews.com/news/electric-c ... 0-minutes/

The real time graphic showing how many Tesla there are is a good antidote to folk who argue Tesla are not selling in China.

Regards,

[odysseus2000]

A year in the stock price of car business companies:

https://twitter.com/0_ody/status/1100168379103617024

Regards,

[odysseus2000]

SEC apparently asking judge to act against Tesla for Musk contempt tweet:

https://finance.yahoo.com/news/tesla-sh ... 03623.html

Wonder how strong the SEC case here is as the tweet contents they are complaining about don't seem so far from factual as to be market misleading, but shares currently down over 4% in after market trading.

Regards,

[BobbyD]

SEC apparently asking judge to act against Tesla for Musk contempt tweet:

https://finance.yahoo.com/news/tesla-sh ... 03623.html

Wonder how strong the SEC case here is as the tweet contents they are complaining about don't seem so far from factual as to be market misleading, but shares currently down over 4% in after market trading.

Regards,

Remember that Musk's twitter feed is a legally recognised way of disseminating price sensitive information about Tesla, that 500,000 is 25% higher than 400,000, that according to other sources the tweet was not vetted by a lawyer as required by his SEC deal, and that they aren't per se asking for action purely on the grounds of the content of the tweet but on the grounds that the tweet violates the settlement Musk made to get out from under the catastrophic 'funding secured' tweet a whole 5 months ago.

It's probably a good thing he hasn't been petty enough to brand them as the 'Shortseller Enrichment Commision' on Twitter in the meantime...

It also seems to be a very large coincidence that the very next day Tesla's general council quit after a massive two months with the company...

Tesla really need to separate themselves from Musk's Twitter feed.

[odysseus2000]

My guess is that this will be laughed out of court by the judge.

It is a forward looking comment & includes the word "around" thereby making it open to interpretation especially as one can not know how many cars Tesla will make & the first part of zero at the start of the period isn't being argued about.

Regards,

[BobbyD]

My guess is that this will be laughed out of court by the judge.

Wasn't that your guess last time when Musk and Tesla ended up with $20 million fines, Musk had to step down as Chairman and agree to have any substantive tweets about the company vetted by a lawyer before posting them?

Who knows maybe he loses the CEOship this time...

Bear in mind that Musk made a deal that required and was given court approval to make the $420 fiasco go away. What he is currently being accused of is breaking that deal, and Tesla's lawyers appear to have admitted as much...

The commission sued Mr. Musk and Tesla last year over a Twitter post in which he said he had “funding secured” to take the company private at $420 a share. It turned out that the plan to take the company private was in a much more embryonic state than his tweet indicated.

The settlement required the company to establish “mandatory procedures to oversee and preapprove Mr. Musk’s Tesla-related written communications” that might have material information.

...

Tesla’s lawyers acknowledged in a letter to the S.E.C. on Friday that Mr. Musk’s tweets had not been reviewed before they were posted. They argued that he had believed that “the substance” of his post “had already been appropriately vetted, preapproved and publicly disseminated.”

- https://www.nytimes.com/2019/02/25/busi ... tesla.html

[odysseus2000]

Around page 7 of the earnings call transcript Musk says 350 to 500 k model 3 this year.

Given this I would say the SEC have no case & could instead find themselves in trouble.

Regards,

[BobbyD]

Around page 7 of the earnings call transcript Musk says 350 to 500 k model 3 this year.

Given this I would say the SEC have no case & could instead find themselves in trouble.

Regards,

The accuracy of the post is to some degree irrelevant, according to Tesla's own lawyers it was posted without legal vetting as required by the court sanctioned deal he made with the SEC in October, see previous updated post for details.

His own defence is that he meant to say annualised production rate of 500k, not production of 500k. That's exactly the sort of slip which should have been picked up by court mandated vetting of his Twitter account which is a legal way of disseminating market sensitive information about Tesla. A projection of 350k-500k is not the same as 500k as a matter of fact.

[PeterGray]

My guess is that this will be laughed out of court by the judge.

It is a forward looking comment & includes the word "around" thereby making it open to interpretation especially as one can not know how many cars Tesla will make & the first part of zero at the start of the period isn't being argued about.

Regards,

No, no one will be laughing about this. Yes, it may get thrown out, though I wouldn't bank on it. But the issue is serious. Musk, time and again, fails to act as a responsible CEO. He was caught out before, got away lightly on the basis of an agreement that he has now broken - whatever the degree of misleading info in the tweet, and how deliberate it was, he broke an SEC agreement that he had to get legal oversight before tweets relating to company performance.

[PeterGray]

Tesla's reputation isn't going to be helped by the news today that someone was killed after a crash when the locks failed and the airbags didn't deflate. It may prove to be just bad luck - these things can happen in high speed crashes, but if it points to an issue with door locks that don't have working manual overrides and too much reliance on software then they may have (more) problems.

https://electrek.co/2019/02/25/tesla-cr ... r-handles/

[odysseus2000]

Around page 7 of the earnings call transcript Musk says 350 to 500 k model 3 this year.

Given this I would say the SEC have no case & could instead find themselves in trouble.

Regards,

The accuracy of the post is to some degree irrelevant, according to Tesla's own lawyers it was posted without legal vetting as required by the court sanctioned deal he made with the SEC in October, see previous updated post for details.

His own defence is that he meant to say annualised production rate of 500k, not production of 500k. That's exactly the sort of slip which should have been picked up by court mandated vetting of his Twitter account which is a legal way of disseminating market sensitive information about Tesla. A projection of 350k-500k is not the same as 500k as a matter of fact.

Musk tweeted around 500,000, not a specific number.

Regards,

[BobbyD]

My guess is that this will be laughed out of court by the judge.

It is a forward looking comment & includes the word "around" thereby making it open to interpretation especially as one can not know how many cars Tesla will make & the first part of zero at the start of the period isn't being argued about.

Regards,

No, no one will be laughing about this. Yes, it may get thrown out, though I wouldn't bank on it. But the issue is serious. Musk, time and again, fails to act as a responsible CEO. He was caught out before, got away lightly on the basis of an agreement that he has now broken - whatever the degree of misleading info in the tweet, and how deliberate it was, he broke an SEC agreement that he had to get legal oversight before tweets relating to company performance.

Breaking an agreement with the SEC would be one thing, but this agreement had to be signed off by the court, which makes breaking it contempt of court... It's also breaking the agreement which stopped the further pursuit of Musk and Tesla for the funding secured tweet, I would imagine that invalidating that ceasefire would not end well for Musk or Tesla.

[BobbyD]

Musk tweeted around 500,000, not a specific number.

Regards,

Without getting the tweet legally proofed in contravention of his court sanctioned deal with the SEC....

[odysseus2000]

My guess is that this will be laughed out of court by the judge.

It is a forward looking comment & includes the word "around" thereby making it open to interpretation especially as one can not know how many cars Tesla will make & the first part of zero at the start of the period isn't being argued about.

Regards,

No, no one will be laughing about this. Yes, it may get thrown out, though I wouldn't bank on it. But the issue is serious. Musk, time and again, fails to act as a responsible CEO. He was caught out before, got away lightly on the basis of an agreement that he has now broken - whatever the degree of misleading info in the tweet, and how deliberate it was, he broke an SEC agreement that he had to get legal oversight before tweets relating to company performance.

Breaking an agreement with the SEC would be one thing, but this agreement had to be signed off by the court, which makes breaking it contempt of court... It's also breaking the agreement which stopped the further pursuit of Musk and Tesla for the funding secured tweet, I would imagine that invalidating that ceasefire would not end well for Musk or Tesla.

I doubt any judge will see this as a contempt of court.

Regards,

[BobbyD]

I doubt any judge will see this as a contempt of court.

Regards,

Just like last time....

[odysseus2000]

I doubt any judge will see this as a contempt of court.

Regards,

Just like last time....

Last time there were all manner of wild claims, such as Musk would be jailed, banned from being a CEO and such. In the end he and Tesla paid $20 million each for a tweet that led to a significant rise in the equity price. There was no similar rise this time, his tweet was consistent with earlier estimates.

Counsel will have, imho, some trouble in convincing a judge that this a contempt of court issue, but we will see.

Regards,

[BobbyD]

How exactly can Musk's private tweets be considered to have been manipulations, save for the folk who don't understand how the investment business works and who have lost betting they understood the market better.

Last time Musk was forced to step down as Chairman, except that wasn't last time since this is an infraction of the agreement which was reached last time it is in fact still this time...

[AJC5001]

On Yesterday (TV Channel) at 5:00 pm today (26th February) (and probably on catch-up as well).

"Impossible Engineering
Season 3 Episode 9 of 12
Tesla The Tesla automotive manufacturing facility, where the world's strongest robots produce 2000 cars a week. Featuring a comparison with the world's first production line"

Impossible Engineering?
2000 cars a week?
World's first production line? (Model T Ford by any chance?)

Seems ideal viewing for this topic

Adrian

[BobbyD]

On Yesterday (TV Channel) at 5:00 pm today (26th February) (and probably on catch-up as well).

"Impossible Engineering
Season 3 Episode 9 of 12
Tesla The Tesla automotive manufacturing facility, where the world's strongest robots produce 2000 cars a week. Featuring a comparison with the world's first production line"

Impossible Engineering?
2000 cars a week?
World's first production line? (Model T Ford by any chance?)

Seems ideal viewing for this topic

Adrian

...or an idea for a much more expensive version of Robot Wars where industrial robots fight to the death.

[odysseus2000]

So Tesla despite intense critical comment all over the media is down 0.3%.

Meanwhile Nio was up about 18% at its zenith and closed up 8.8% and I pocketed a nice circa 14% gain since yesterday.

Electric vehicles may run cool, but their equity is hot!

Regards,