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Elon Musk Believed He Had Verbal Agreement with Saudis for Tesla Buyout

By The Wall Street Journal

The legal threat from securities regulators to ban Elon Musk from Tesla Inc. raises the specter of a once-unfathomable exit that would potentially have dire consequences for the electric-car company

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  • Musk spoke and the stock moved. If the statement is false, the case against him seems pretty straightforward...but. But he said "considering"; he did not say it was a done deal. And he is a known entity with known behaviors. If an investor is risk-averse shouldn't they just stay away from Musk's companies?

  • Peter Repucci
    Peter RepucciAssociate at Riverstone Holdings

    "Recently" learned about the significance of $420. Sure, Elon, sure.

    Honestly that doesn't surprise me at all. Some part of me hoped he wasn't being grossly irresponsible and impulsive, but who am I kidding? It's Elon Musk we're talking about.

  • trump tweets lies and deceit that impact the world and markets 24/7, nothing happens. musk tweets one vaguely misleading comment and tesla gets whacked. great system.

  • They just want some pie from the settlement and will be an incentive for him to take all of his companies private. He's not a novice. Very calculated moves.

  • We worked with Solar City on fundraising efforts when they were raising funds through bonds, prior to their acquisition by Tesla in 2016. I would like to hear Tesla comment on what went on in the meeting that led to the tweet that spurred the charges by the SEC.

  • So here it is at last. The problem isn't the lawsuit but the implications and consequences. For starters there is probably mounting pressure to get him off Tesla's board. This compounded with, not only a loss of market value but a decrease in competitivity due to talent retention and other funds investing in their competitors. It reminds me of a young Steve Jobs when he lost it due to his ego...

  • Junta Nakai
    Junta NakaiproIndustry Leader at Databricks

    By suing Elon Musk, the SEC lost more money for Tesla shareholders (-7bn) than Elon made for them (+6.5bn) with his tweet.

  • Michael  Pucker
    Michael PuckerChairman & CEO at DNS Capital

    If you wait around long enough, bad things happen to bad people.

  • Yes actions have consequences even for Musk.

  • David Killion
    David KillionInfantryman at USMC

    I think what we’re learning in the world today is... stay off Twitter if your a person of high influence in society...

  • Kyo Kaku
    Kyo KakuVice President at China-Japan J/V

    Lesson learnt: just stay away from your SNS whenever you get high regardless of whether on overwork, liquor, or joint weed. You’ll regret when you are sobered.

    It seems marijuana culture only taught Musk the significance of number, but not of compliance.

    IR’s reaction that falsely indicated the existence of a “firm offer” got the situation worse. Such a weak governance.

  • Brad Jakeman
    Brad JakemanproCEO & Founder at Brad Jakeman Inc.

    And not a moment too soon.

  • So the $420 share price was a joke about marijuana? If that’s true, what an insult to all of Tesla’s stakeholders! What hubris! Hate to say I told you so, but I called this one here on NewsPicks when this news broke. Then again, no one should be surprised. This was both idiotic and apparently illegal.

  • This is why we need and have an SEC. Otherwise it’s the wild wild west with CEOs making outlandish statements to manipulate stock prices. I think Musk is great. But the behavior is not acceptable from anyone in that position. Sad situation, but the right move.

  • This age of technology and instant communication is having some crazy sociological effects that will be disected more than any other era of human history

  • Jared Loiben
    Jared Loiben

    Do you have any evidence tyree that is the incentive for the sec? I mean it was pretty obvious that there were a lot of materially incorrect statements made by an officer of the company regarding a material event

  • De’Andre Crenshaw
    De’Andre CrenshawRetail Managment at CVS Pharmacy

    Everyone knew this was going to happen, and it’s kinda unsettling still. This makes me concerned about his mentally health his stability, he clearly needs more help with the day to dis operations of his companies or he is going to burn out faster and faster and that’s not the publicity Tesla needs right now especially considering it still is trying to make a sustained profit or any profit for that matter.

  • Truong Phan
    Truong Phan

    He needs someone like Sheryl Sandberg to manage many firms like this.

  • Adaora Udoji
    Adaora Udoji

    Clearly some are not surprised the SEC stepped in, what I think is stunning is the speed by which the agency moves. The SEC is usually methodical which can take some time to thoroughly investigate and that usually takes many months if not years. Were they already investigating him prior to the summer events?

  • Melody Beals
    Melody Beals Quality at Medical Devices

    Raise your hand if you saw this coming!!!

    *Raises Hand*

  • Shaun Shaun
    Shaun Shaun

    He knew what he was doing,,its not fraud if he didnt take it public,,it was almost though,,

  • Ethan Dickenson
    Ethan Dickenson

    I like Elon Musk because I think he is smart and has become one of the most influential technology leaders in our world today. I don’t think there has been as much buzz around any one personality since Steve Jobs. I hope the financial world doesn’t completely shut down his funding, forcing his fate to match that of the original Tesla.

  • Matteo Knew
    Matteo Knew

    Surprised he hasn’t been taken to

    task for his overpriced overrated randomly exploding cars yet

  • Elior Marques
    Elior MarquesYells at other people

    "According to Musk, he calculated the $420 price per share based on a 20% premium over that day's closing share price because he thought 20% was a 'standard premium' in going-private transaction," the SEC alleged in its suit. "This calculation resulted in a price of $419, and Musk stated that he rounded the price up to $420 because he had recently learned about the number's significance in marijuana culture and thought his girlfriend 'would find it funny, which admittedly is not a great reason to

    "According to Musk, he calculated the $420 price per share based on a 20% premium over that day's closing share price because he thought 20% was a 'standard premium' in going-private transaction," the SEC alleged in its suit. "This calculation resulted in a price of $419, and Musk stated that he rounded the price up to $420 because he had recently learned about the number's significance in marijuana culture and thought his girlfriend 'would find it funny, which admittedly is not a great reason to pick a price.'"

    Are you kidding?!?! That’s the best reason to pick a price😂

  • Ryuga Maeda
    Ryuga MaedaCEO at Umeex

    Presidents should be careful with usage of SNS.

    Even if he is the president...

  • Verbal agreement. Are you kidding me? I must be having an outa body experience.

  • Brian Ezzell
    Brian Ezzell

    He must have been smoking again.

  • Patricia Ann Lish Ellis
    Patricia Ann Lish Ellis

    What makes

    You perfect?

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