New vs Used?

[JohnD]

"The Securities and Exchange Commission filed a fraud complaint in the federal court in Manhattan alleging that the Tesla chief executive made “false and misleading statements” when he made the claims in an impromptu series of tweets..."

"...If the charges are upheld it could lead to him being prevented from acting as a CEO, president, chief financial officer or other top executive at a company registered with the SEC."

https://www.ft.com/content/fbca8b7c-c293-11e8-8d55-54197280d3f7?emailId=5bad39db274e290004569adf&segmentId=3d08be62-315f-7330-5bbd-af33dc531acb

 

[motorbiking]

Yes - saw that - what a muppet.. But then with so many shorters he could hardly have settled. The SEC do file suits against rather a lot of CEOs however. Tesla is crying out for a musk to move to a Chief innovation/technology officer role and for a COO to step up. The cars are selling like hot cakes and the company is looking to make a profit this year.

 

[JohnD]

"Elon Musk must step down as Tesla chair and pay a fine after reaching a deal with US regulators over tweets he wrote about taking the firm private.
It follows Thursday's decision by the Securities and Exchange Commission (SEC) to sue Mr Musk for alleged securities fraud.
Under the deal, Mr Musk will remain as Tesla CEO but must step down as chairman for three years."

https://www.bbc.co.uk/news/business-45696150

"Founder's syndrome."

The FT says:

"Mr Musk’s earlier refusal to settle — which was quickly followed by a public statement of support for him from Tesla’s board — was condemned by corporate governance and legal experts, who said he and the company had triggered an unnecessary crisis by confronting the regulators.

John Coffee, a professor at Columbia University law school, said the episode demonstrated a characteristic wilfulness on Mr Musk’s part, as well as weakness by the company’s board in failing to force him into a settlement.

Tesla’s shares fell by more than 12 per cent on fears that he might be forced out of the company entirely."

https://www.ft.com/content/3c381f68...egmentId=3d08be62-315f-7330-5bbd-af33dc531acb

Tesla is loaded up with debt. If you bought a bond (= lent it some money) you can buy insurance against not getting it back. It now costs 22.5% of the value for five years. So you lent them a pound and pay 22.5p to insure against default.

I wouldn't.

 

[Mottie]

Says on the news he’s just stepped down as chairman and been fined $15m. Oops!

 

[motorbiking]

I wonder how they work out who the harmed investors were? $40M is like the avg person paying £1,000. Only the SEC's filing creating more trading opportunities than the take private tweet.

 

[motorbiking]

A brave investor would have made a killing if they purchased in the last few days.

 

[JohnD]

Other voices are asking what's the value of stock in a company that has never made a profit, is built on debt, is burning through its borrowed money, and is led by a whimsical toddler and his yes-men.

Will the company cope when interest rates rise?

Is Tesla Springfield's Monorail?

 

[motorbiking]

You can’t value tech stocks on fundamentals (apparently). Facebook. market cap nearly half a billion - revenue half as much as companies with less than half the Marketcap. Crazy

Tesla does have some high value IP despite the critics. Something it could licence if Musk was muzzled

I made loads on facebook though I reckoned i’d loose the lot at the time. I thought it’s market cap would sink back to about 70bn which is where it should be based on fundamentals