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(Guardian)   The SEC would like to know if Elon Musk has $70 billion lying around or not   ( theguardian.com) divider line
    More: Awkward, Musk, U.S. Securities and Exchange Commission, CEO Elon Musk, Stock, Stock market, Musk's claims, Musk's tweets, Musk's credibility  
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1859 clicks; posted to Business » on 10 Aug 2018 at 10:24 AM (17 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



41 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2018-08-10 09:02:21 AM  
Didn't everybody with a brain expect something like this?  You don't get to manipulate the market brazenly and openly without getting some scrutiny.
 
2018-08-10 09:11:18 AM  
Let's see what the SEC actually does about it.  This will be extremely entertaining.
 
2018-08-10 09:49:51 AM  
Looks like I won't get me 395-400 to short. Oh well...

On to Carvana!
 
2018-08-10 09:54:36 AM  

BizarreMan: Didn't everybody with a brain expect something like this?  You don't get to manipulate the market brazenly and openly without getting some scrutiny.


Not unless you're the President or somethin', geez.
 
2018-08-10 10:29:08 AM  
Maybe stay off twitter, it's a good rule for anyone.
 
2018-08-10 10:36:37 AM  
Alabama will beat him.
 
Xai [TotalFark] [BareFark]
2018-08-10 10:41:45 AM  
His only chance of avoiding this is if he does in fact have funding secured and does intend to go through with the buy out.
 
2018-08-10 10:47:16 AM  
Sounds like this Elon guy is selling shorts.  Who is this Elon guy working for anyway?  Is it Big Cargo Short?  Big Hot Pants?  Big Shorts-That-Gym-Coaches-in-the-70s-Wor​e?

img.fark.netView Full Size

We're on to your little shorts scam.
 
2018-08-10 10:47:32 AM  
Does Mars have an extradition treaty with the US? Checking for a friend.
 
2018-08-10 10:53:11 AM  
I thought the ad I saw advertising a child sized submarine selling for "70 billion, OBO" was strange at the time, but now it makes sense.
 
2018-08-10 10:56:19 AM  

HotWingConspiracy: I thought the ad I saw advertising a child sized submarine selling for "70 billion, OBO" was strange at the time, but now it makes sense.


That's too much.  I know where you can get one of those for free.
img.fark.netView Full Size
 
2018-08-10 10:59:43 AM  
Flamethrowers and maniacal laughter.
Soon.
 
2018-08-10 11:02:47 AM  

Marcus Aurelius: Let's see what the SEC actually does about it.  This will be extremely entertaining.


A sweetheart deal with the SEC won't save him, or his company. Too many people lost money. There will be lawsuits.
 
2018-08-10 11:03:12 AM  
Narrator: He does not
 
2018-08-10 11:07:58 AM  
What?  This guy is a charlatan and people are acting surprised?  Probably should have stuck to flame-throwers.
 
2018-08-10 11:18:37 AM  
I've been waiting for this for a while.  Musk says a lot of things that can get him into trouble.  I don't care much about the outcome, I just love a good dumpster fire.
 
2018-08-10 11:39:13 AM  

NewportBarGuy: Looks like I won't get me 395-400 to short. Oh well...

On to Carvana!


You may in a lawsuit!  Or that is probably not at all how any of this works.
 
2018-08-10 11:39:46 AM  

BizarreMan: Didn't everybody with a brain expect something like this?  You don't get to manipulate the market brazenly and openly without getting some scrutiny.


This Musk dude should not be running a publicly traded company.
 
2018-08-10 11:41:28 AM  

Fabric_Man: Too many people lost money. There will be lawsuits.


This is America.  There's always lawsuits.
 
2018-08-10 11:47:13 AM  
I always thought Musk was suspiciously similar to an imbecile boss I used to work for, but since I never actually worked for Musk I had to give him the benefit of the doubt. The last six months seem to be eliminating the doubt. At this point I'm just hoping he doesn't take SpaceX down with him when he craters.
 
2018-08-10 11:56:15 AM  

Fabric_Man: Marcus Aurelius: Let's see what the SEC actually does about it.  This will be extremely entertaining.

A sweetheart deal with the SEC won't save him, or his company. Too many people lost money. There will be lawsuits.


The stock price has doubled in the last five years, and has been riding high for the last year.  All of the stock investors have maintained or grown their investments. The company isn't going to file for bankruptcy, so all outstanding debts they owe are still good.  I'm not seeing where there's a well of people who have any standing to file lawsuits.

The only thing the SEC is concerned about is whether his statement was a true statement of intent, or was a brazen play to manipulate the market.  If he's got cash on hand (or appropriate lend funding) for a realistic buy out offer, he's fine.  If not, they SEC will eat him alive.  It's pretty simple..
 
2018-08-10 12:00:54 PM  

Khellendros: The only thing the SEC is concerned about is whether his statement was a true statement of intent, or was a brazen play to manipulate the market.  If he's got cash on hand (or appropriate lend funding) for a realistic buy out offer, he's fine.  If not, they SEC will eat him alive.  It's pretty simple..


Even if he had the funding, anyone who was going to back this must be having second thoughts right now.  The guy just advertised his intent buy out shares well over current market without having any of the paperwork in order.  That doesn't look like a smart investment.
 
2018-08-10 12:11:35 PM  

IrateShadow: Even if he had the funding, anyone who was going to back this must be having second thoughts right now. The guy just advertised his intent buy out shares well over current market without having any of the paperwork in order. That doesn't look like a smart investment.


It's pretty much how most "going private" bids work with public companies.  Rewarding above market value is the only way to deter stock owners and board members from organizing to protest the bid.  You're maximizing shareholder value, so they're ok with it.  No one typically buys out a high profile company at market level.

The only issue is whether he jumped the gun on making it public knowledge.  If it slows the process down and he can't show assets capable of doing it yet, things get sticky fast.  But maybe he has it.  If his "secured" statement is accurate, he might have all the paperwork in-hand.
 
2018-08-10 12:11:59 PM  
Elon Musk is inevitably starting to lose it from chronic stress and anxiety from his job. He's a billionaire, can't he get a 24/7 masseuse or something?
 
2018-08-10 12:13:55 PM  

IrateShadow: Khellendros: The only thing the SEC is concerned about is whether his statement was a true statement of intent, or was a brazen play to manipulate the market.  If he's got cash on hand (or appropriate lend funding) for a realistic buy out offer, he's fine.  If not, they SEC will eat him alive.  It's pretty simple..

Even if he had the funding, anyone who was going to back this must be having second thoughts right now.  The guy just advertised his intent buy out shares well over current market without having any of the paperwork in order.  That doesn't look like a smart investment.


You don't throw your highest offer on the table to start a negotiation.  He said $420 to scare the bejesus out of the short sellers.  Did it also move the stock?  You bet it did.

Musk is not looking too smart this year.  Can't wait to see what the SEC decides to do.
 
2018-08-10 12:14:20 PM  
Everyone thinks that this is about cars. It isn't. It is about everything-- the battery factory, the plant in China, the solar stuff. His ability to deliver a huge battery pack to Australia to help stabilize their electrical grid probably caught the attention of other countries.

The value in Tesla right now is not in car production. If he gets the automation sorted then that will be a huge help, but right now the car focus actually detracts from Tesla, in my opinion. I haul automated production equipment sometimes, two places had Tesla machines set up but they were running over 2 years late on delivery and they still were not ready to ship, still were not meeting the specs required by Tesla.

You can't operate a business if your vendors don't deliver. Trying to replace CNC equipment with hand assembly is a huge problem. I used to manage QC sort teams that had to inspect quality in because the lines were not automated. There were days that we threw out everything built the day before. And he's doing much of the work in-house that is normally done by outside suppliers, so he can't blame them like Detroit can.

About once every other week I have a load from one supplier or another that had production breakdowns or QC problems and are in danger of shutting down an auto assembly plant. And these are from facilities with experienced managers etc.

I am always amazed that any cars get built anywhere, and probably a quarter of the build price is for paying expedite costs.
 
2018-08-10 12:17:08 PM  

BizarreMan: Didn't everybody with a brain expect something like this?  You don't get to manipulate the market brazenly and openly without getting some scrutiny.


Trump has been doing that for almost 2 years.
 
2018-08-10 12:29:09 PM  
Maybe this is a $70m deal, but it will require far less cash. Major investors will probably swap shares for private holdings. Musk holds about 20%, major funds hold another 60%; so, only the smaller shareholders will need to be bought out. That drops the cost to less than $15M.
 
2018-08-10 12:31:30 PM  
Dang! Should be 'B' not 'M'.
 
2018-08-10 12:51:39 PM  
It wouldn't surprise me if Musk has been mining bitcoins for years and is now sitting on a mountain of millions of the damned things.

/he could take Tesla private AND totally crash the bitcoin market in one fell swoop.
//never underestimate anybody
///lesson number one from a long, checkered life
 
2018-08-10 12:54:58 PM  
Matt Levine's column over at Bloomberg points out the absurdity of this (sorry for the indirect link through twitter, fark doesn't like Bloomberg links for some reason)

The tl;dr version is that if SEC called up Musk and asked him where he's getting his financing for $X Billion or whatever a standard buyout would cost at $420 and he said "here's my term sheet for $X Billion" then there would be no investigation, which means either he doesn't have a term sheet or his term sheet was written by elves and signed with unicorn poop.

The SEC is not going to like an offer to take a company "private" while still allowing public shareholders to keep their shares through special investment vehicles in order to subvert quarterly reporting requirements.  The SEC is really, really not going to like making an offer that will not withstand regulatory scrutiny and has no chance of being accepted by the board as some sort of short-squeeze ploy.

Musk is likely in deep trouble here unless he can secure proper financing and make a good offer in a hurry
 
2018-08-10 01:03:05 PM  

Rapmaster2000: HotWingConspiracy: I thought the ad I saw advertising a child sized submarine selling for "70 billion, OBO" was strange at the time, but now it makes sense.

That's too much.  I know where you can get one of those for free.
[img.fark.net image 850x354]


Scrap it or make a smoker out of it?
 
2018-08-10 01:14:55 PM  

wejash: BizarreMan: Didn't everybody with a brain expect something like this?  You don't get to manipulate the market brazenly and openly without getting some scrutiny.

Not unless you're the President or somethin', geez.


You are so clever and edgy making this political comment.  Good for you.  now go sit down and let the adults speak, enjoy your cookie.
 
2018-08-10 01:15:39 PM  

This text is now purple: Alabama will beat him.


/Shakes tiny fist

Came here to make a booster/bag man joke
 
2018-08-10 01:19:53 PM  

natazha: Dang! Should be 'B' not 'M'.


Don't worry, the funding Musk secured probably involves the exact same typo.
 
2018-08-10 01:28:54 PM  

drjekel_mrhyde: Rapmaster2000: HotWingConspiracy: I thought the ad I saw advertising a child sized submarine selling for "70 billion, OBO" was strange at the time, but now it makes sense.

That's too much.  I know where you can get one of those for free.
[img.fark.net image 850x354]

Scrap it or make a smoker out of it?


Smoked Thai?
 
2018-08-10 01:42:09 PM  

jso2897: Flamethrowers and maniacal laughter.
Soon.


media.giphy.comView Full Size
 
2018-08-10 01:53:12 PM  
The stock price has doubled in the last five years, and has been riding high for the last year.  All of the stock investors have maintained or grown their investments. The company isn't going to file for bankruptcy, so all outstanding debts they owe are still good.  I'm not seeing where there's a well of people who have any standing to file lawsuits.

Are you quoting from The Smartest Guys in the Room?
 
2018-08-10 02:08:49 PM  

covfefe: Elon Musk is inevitably starting to lose it from chronic stress and anxiety from his job. He's a billionaire, can't he get a 24/7 masseuse or something?


He has Gwynne Shotwell to run Spacex for him.  He needs to promote her to CEO (just put her in charge of the tweets would be enough, the rest of the company seems to be doing fine) and find a similar person for Tesla.

Marcus Aurelius: Let's see what the SEC actually does about it.  This will be extremely entertaining.


The SEC has been entirely toothless were CEOs are concerned since at least the Great Depression.  On the other hand, Musk fits the profile of the occasional example (and certainly has enough enemies) so they might make an example out of him.  I'm guessing he has just enough evidence of funding (some sort of 'ok' email from the Saudis) to get out of trouble with the SEC.
 
2018-08-10 02:45:20 PM  
img.fark.netView Full Size
 
2018-08-10 03:15:45 PM  
Like I've been saying for about three years. Elon Musk is, in many ways, an idiot. I'm sure his iq is on the moon but in the last 90 days he's on a tear of doing really really dumb things.
 
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