Posted on 09/27/2018 2:57:51 PM PDT by rb22982
Regulators accuse him of misleading shareholders when he said he had funding for a corporate buyout
Securities regulators on Thursday sued Elon Musk for fraud and sought to remove him from Tesla Inc., TSLA -0.67% raising doubts about the future of an electric-car maker synonymous with the audacious entrepreneur.
The SEC’s lawsuit—sparked by Mr. Musk’s August comments that he had lined up funding for a corporate buyout—seeks civil penalties against Mr. Musk and asks a court to bar him from being the officer or director of a public company. [Emphasis mine]
“These misleading statements, none of which were pre-cleared or reviewed by anyone at Tesla, caused significant market confusion and disruption,” said Steven Peikin, the SEC’s co-director of enforcement.
(Excerpt) Read more at wsj.com ...
You have to make things real compared to what? Consider the incumbant aerospace companies. The have spent 100’s of billions of dollars over the decades. They never built a rocket that goes up and comes back down again. They charge the Feds twice as much as Musk’s space company.
Musk electric car company is the only company that keeps the USA in the electric car game. The major are sucking pure hind tit.
You absolutely have no idea how powerfully the Chinese government is pushing chinese electric car makers. They drop billions of dollars on them. This is absolutely no joke. 10 years from now the car industry is not going to resemble anything like it is right now.
Your p’s and q’s are freaking prefect and they destroy some of america’s crown jewels and america’s best plays for some the primary industries of the future.
you just give it away because the man ain’t perfect.
I applaud him for taking advantage of the system. His rocket $ from gov is hardly the only subsidy he’s received. 1) tax credits for cars 2) tax credits for solar 3) Selling credits on his cars for MPG to other car companies due to CAFE requirements put in place by Obama etc. But just because he, and other companies, are good at taking advantage of the US taxpayer doesn’t make him a jewel.
Musk electric car company is the only company that keeps the USA in the electric car game. The major are sucking pure hind tit.
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It’s easy to build a better mousetrap when you have nearly unlimited taxpayer money and never expect to make a profit.
It’s easy to build a better mousetrap when you have nearly unlimited taxpayer money and never expect to make a profit.
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easy? easy?
If it were easy GM and Ford would be doing it five years ago.
The Chinese are now putting unlimited money into their electric car companies. Musk has built one giga factory. The Chinese are working on five freaking gigafactories.
They’re going to own the freaking space because guys like you don’t know from easy.
GM and Ford together are dead dead slow. Their share of the global car market shrinks daily. Time is passing them by.
You don’t know it. But its happening. Its happening now.
Please. Musk is the only electric car player in the US sand box with any chance against the terrible terrible changes coming to the car market.
This article is up at Marketwatch, a financial site inhabited by many liberals. If this was any other CEO billionaire, they’d be celebrating and cussing the perp. But since Elon makes electric cars, it’s all a setup, blah blah blah.
If it were easy GM and Ford would be doing it five years ago.
The Chinese are now putting unlimited money into their electric car companies. Musk has built one giga factory. The Chinese are working on five freaking gigafactories.
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GM and Ford aren’t playing with “FREE” taxpayer money ,, TESLA=SOLYNDRA ... Tesla’s China factory simply means that they are REQUIRED TO GIVE THE CHINESE GOVERNMENT FULL ACCESS TO THEIR TECH ,,, including the autopilot code...
Don’t be so sure I don’t “know it” , I spent a month in Asia this summer... Since the Chinese are building using stolen US tech and patents there is no problem in copying them... when the cars make economic sense to build.
How many shares do you hold and how much financial pain are you willing to endure for your religion ... Saint Elon..
So by your reasoning we should defund DARPA, ARPA and a dozen other agencies that pay for US R&D because the US taxpayer is funding companies that should fund their own R&D.
nuts
God never told you anything about how the US invention works.
Wow horrible straw man argument and most progress exists without public money or help and it’s impossible to know what was lost from reallocating resources
Look at the money he will save. Instead of $420 a share, he can pick it up on the open market at around $270 a share.
Are you going to loan him the money for the deal? And what about the convertible debt that’s coming due in a few months. Better throw in some extra cash for that. And some more extra cash for the defamation actions.
Way to go Elon “Hindenburg” Musk.
Yep. I was getting flamed last Christmas for suggesting that the car is a stupid, Tesla will die due to lack of demand, Musk is an amateur who had no business getting into the car business, and the company is in trouble. I say to them, “Can you hear me now?”
He’s not being prosecuted in criminal court, he’s being sued in civil court. It really helps that Elon was stupid enough to put it in writing and double down on it.
And I’m still not the slightest bit impressed with the Tesla. From my locale (near Salt Lake City), Vegas is a 7 hour drive, speed limit is 80 most of the way (if you keep it under 85 the cops won’t give you a second look), and my RAV4 will get 27-ish MPG at that speed with the A/C running on fan speed 3 out of 4, and the trip would take just under 3/4 of a tank of gas.
A Tesla would have to recharge twice if it kept the speed around 60. With the wait-time for charging, the trip would be an overnighter. But the pro-Tesla people call me an idiot. Whatever...
You should go over to the WSJ article’s comment section, the Elon Musk fanbois have been posting all day over there. “He’s being persecuted”, “Trump is jealous of his brilliance”, there’s on tree-hugger saying that demand for the car is taking off and is this awesome paradigm shift. What a crock. I’m quite confident that I can take a road trip anywhere with paved roads and have gas available (although you have to be careful in northern Nevada). In an electric car? No way. Out west, electric car charging stations are as common as hens’ teeth.
Wow horrible straw man argument and most progress exists without public money or help and it’s impossible to know what was lost from reallocating resources......
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Not really, just one US agency — DARPA lies at the root of a huge percent of american technology since WWII.
Silicon valley was primarily funded by the Federal Government through the 1970’s. Before private money took over.
The oil patch is primarily privately funded. But federal money has consistently funded research there through the years.
The NIH spends nearly 2 billion annually on parkinson’s disease research alone. That’s a good thing. Parkinson’s disease costs the government about 280 billion annually. If they get a cure —that cost goes away.
The DOE spends .5 billion annually on next generation nuclear power. (money poorly spent imho because most of the money goes to light smr’s based on light water designs.)
The general rule is that private corporations can fund research that has a payback within 5 years. Beyond that the feds have to do the job.
That is the feds pay for basic research. there is often a public, private, university coalition that works on applied research and usually but not always private money that works on entrepreural projects.
SpaceX is a government contractor. They do the job for half the cost other government contractors. To most sentient beings that’s a good thing. If you want to be consistant at least blast the whole concept of being a government contractor. Insist that all work should be done by federal employees.
The bread and butter of the USA is invention. That’s what we do as a nation and a people. There are all kinds of players in the game. One of the players is the government federal state and local.
If you knew jack about what the Chinese are up to—you would know that the USA is in a fight of its life right now and for the next 20 years over IP dominance. The feds have to seriously up their game or the USA is going to be eclipsed by the Chinese.
They get their payoff, no jail.
Musk has NEVER created a company that wasn't subsidized by the government, period, and hasn't made a profitable company even with that.
What you think that ford and gm don’t enjoy the same tax credits for their alternative fuel cars?
You don’t think that its in the national interest for the USA to develop electric cars?
You don’t think its in the national interest to develop solar power? You probably don’t know about the profound revolution that’s going on there in terms of cost in desert areas of the USA and around the world. Right now utility scale solar is delivering solar for .02-.03@kwh vs natural gas/coal at .04-.06@kwh.
Too bad the Chinese control the lions share of the manufacturing.
Even with Tesla the Chinese are likely going to own the space within 10 years. Without Tesla, the USA is going to stuck with a constantly shrinking share of the worldwide auto market.
Governments around the world favor companies in the national interest 100% of the time. The Chinese say they want to be the leader in such and such technology and they throw billions of dollars at it. The best that a purist like you can do is murder an industry for the sake of what? Perfection? Bubbles? Because it sure ain’t the national interest.
You’re right that it is in the interest of the tesla bears that tesla not turn a profit.
But Tesla is getting closer
If Tesla is successful they will be the first new American car company to succeed in about 100 years.
You wish Musk ill. I get it. I wish him well. That’s all. I’m a normal republican. I would not invest in his company. Its too faith based. But that’s just me. I totally respect and appreciate what the guy is doing. Plus I recognize the incredible pressure the guy is under and the odds against him succeeding. Oh and also that the guy is a national asset—in a way that you and I will never be.
You don’t think that its in the national interest for the USA to develop electric cars?
Not if it requires 20% tax credit + insane CAFE and other standards to even get a 1-2% market share.
You wish Musk ill.
Before what he did on the tweet, I certainly didn't wish him ill, but he deserves what is coming to him for that. But regardless of that, he is hardly deserving of any accolades. Living off government investment, even when it makes sense for the government to get involved, is hardly enough to make him a "national treasure" as you put it.
So you understand government support for transportation projects go back to the earliest days of the republic.
The idea for the erie canal had been around since the revolution of 1776. Because it was just impossible and unprofitable to get grain from the rich farms of western new york the cities along the coast. The roads were bad. The last wars east of the Appalachian mountains against the Iroquois indians had been fought in this region. In 1809 Jefferson called the idea sheer madness. Not an unreasonable response. They didn’t have steam shovels in those days. Everything had to be done by shovel, pick ax and wheel barrow. The proposed canal was to be over 400 miles long.
8 Years later in 1817 New York state funded the project. There were no engineers. The job was done by amateurs and completed in 1825.
Subsequently two more eastern canals were built. the B&O canal and the Pennsylvania canal. They were all built with state funds.
The canals were obsoleted 20 years later in the 1840’s by the railroads. Once again state and federal governments intervened to give benefits to the railroads so as to encourage their growth. the most famous of these benefits went to the railroads that built their lines from the Mississippi river to the pacific ocean. In this case the federal government gave the railroads the land to build the railroad plus land on either side of the railroad. These were called railroad land grants.
https://www.loc.gov/teachers/classroommaterials/presentationsandactivities/presentations/timeline/riseind/railroad/grants.html
Federal largess to electric car is peanuts compared to federal largess in the past. Like you I don’t buy the whole CO2 business.
But I do buy that in the future with economies of scale and cheaper more efficient batteries—the electric cars will get cheaper than internal combustion cars. But not without a fight of course. But the fight between designs will be a beautiful thing for the car buying public. In the 2020’s imho we are going to come into another golden age of cars.
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