That day Elon Musk almost certainly committed a felony... (yesterday)

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PeterScott

Platinum Member
Jul 7, 2017
2,605
1,540
136
Absurd. Do you know what selective disclosure is?

How was it selective? It was his twitter feed with millions of followers, and picked up instantly by every major news outlet. It was as public as possible and widespread as possible. And in case you are wondering, Tesla did say in a previous filing to follow the twitter feed.

There is only a problem here, if there is no follow through, no serious attempt at taking Tesla private.
 

Thebobo

Lifer
Jun 19, 2006
18,592
7,673
136
Smart, not bold. Solar and electric are never going to replace fossil fuels, but instead will add to the overall energy supply. Meanwhile, SA is ideally sited for solar energy production.

mean wind, or?
 

zinfamous

No Lifer
Jul 12, 2006
110,806
29,557
146
Tesla is a publicly traded company, that makes no sense. He clearly did not notify investors first since the stock bounced on the Tweet. Also, all market participants have a right to access this information for a publicly traded stock, not just the investors.

Any investor has the ability to take action on a public tweet, and with such high volume with Tesla, the reaction can be swift. This certainly isn't insider trading, because the plans were announced publicly without any insider movement (so far as is currently known).

It could possibly still be argued as price manipulation, but I doubt that will stick.
 

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
How was it selective? It was his twitter feed with millions of followers, and picked up instantly by every major news outlet. It was as public as possible and widespread as possible. And in case you are wondering, Tesla did say in a previous filing to follow the twitter feed.

Elon Musk has blocked many accounts from following his Twitter account, and Twitter uses an algorithm to determine which Tweets show up on a users timeline. So no, all investors did no have equal access to this material information.

This is why you halt trading before making an announcement.

There is only a problem here, if there is no follow through, no serious attempt at taking Tesla private.

There is only a problem here is if the SEC follows up on this clear violation of securities laws. I'm not holding my breath.

For his Tweet to not be fraud he needs more than a serious attempt, he needs to already have funding and a plan to take the company private. That's what he said.
 

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
Any investor has the ability to take action on a public tweet, and with such high volume with Tesla, the reaction can be swift. This certainly isn't insider trading, because the plans were announced publicly without any insider movement (so far as is currently known).

Again, he has blocked accounts on Twitter. Twitter was also not included in their SEC filing as a communication channel. It's absurd to argue that the fact that they mentioned it 5 years ago in a filing should matter.

It could possibly still be argued as price manipulation, but I doubt that will stick.

Then why did he do it? Why not wait until 4:00?
 

PeterScott

Platinum Member
Jul 7, 2017
2,605
1,540
136
There is only a problem here is if the SEC follows up on this clear violation of securities laws. I'm not holding my breath.

You are confusing convention, with laws.

There is no law broken announcing major news on Twitter, nor doing it during the trading day. It's only convention not to do that.
 

Vic

Elite Member
Jun 12, 2001
50,415
14,307
136
Again, he has blocked accounts on Twitter. Twitter was also not included in their SEC filing as a communication channel. It's absurd to argue that the fact that they mentioned it 5 years ago in a filing should matter.



Then why did he do it? Why not wait until 4:00?
Because he probably gets off on fucking over the shorts. Which is not illegal.
 

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
how much money did you lose shorting tesla?

Everyone that criticizes Tesla or Musk is accused of being short. Show me another publicly traded firm where this kind of crap goes on. This is more of a cult than a serious business enterprise.
 

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
Certainly not the first CEO to float something to burn shorts. The method appears to new however.

The closest analog that I'm aware of is the Netflix CEO tweeting when the service had reached a billion views or something like that. But that was just a simple milestone that didn't include any forward looking statements. I'm not aware of anything like this happening.
 

PeterScott

Platinum Member
Jul 7, 2017
2,605
1,540
136
Certainly not the first CEO to float something to burn shorts. The method appears to new however.

The tweet was to inform the intention to take the company private.

Burning shorts was just nice bonus for Elon.

It's irrelevant if it was announced via Tweet, or after market close Press Release.
 

JSt0rm

Lifer
Sep 5, 2000
27,399
3,947
126
Everyone that criticizes Tesla or Musk is accused of being short. Show me another publicly traded firm where this kind of crap goes on. This is more of a cult than a serious business enterprise.

Im just asking man. Im off the cult of musk. His submarine idea to ave them kids was dumb af.
 
Reactions: cytg111

TechBoyJK

Lifer
Oct 17, 2002
16,701
60
91
I don't think Blackjack knows much about how the SEC works.

If you think someone like Musk 'Committed a felony via tweet' then it's a good time to admit you're probably not sure what's going on and are misunderstanding the situation.
 
Reactions: PeterScott

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
Im just asking man. Im off the cult of musk. His submarine idea to ave them kids was dumb af.

I doubt anyone that posts regularly on these forums is actually shorting securities. It's a more advanced trading strategy than most people realize. Securities lending fees are not cheap, and broker dealers will want you to have substantial liquid assets to cover positions that move against you.

I personally do not invest in individual securities, short or long. I'm a low cost index investor in my 401(k)

I don't think Blackjack knows much about how the SEC works.

If you think someone like Musk 'Committed a felony via tweet' then it's a good time to admit you're probably not sure what's going on and are misunderstanding the situation.

Honestly, my guess is blackjack got burned on a short.

Sure dude.
 
Reactions: JSt0rm

zinfamous

No Lifer
Jul 12, 2006
110,806
29,557
146
I doubt anyone that posts regularly on these forums is actually shorting securities. It's a more advanced trading strategy than most people realize. Securities lending fees are not cheap, and broker dealers will want you to have substantial liquid assets to cover positions that move against you.

.

pfft, yeah right. That sounds like communist, money-killing anti-freedom financial regulation and stuff. We don't have anything like that anymore. GOP is in charge, you know. I'm pretty sure we are back to blithe tolerance of substantial margin trading among the noob investors these days, because MAGA.
 

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
pfft, yeah right. That sounds like communist, money-killing anti-freedom financial regulation and stuff. We don't have anything like that anymore. GOP is in charge, you know. I'm pretty sure we are back to blithe tolerance of substantial margin trading among the noob investors these days, because MAGA.

haha, Trump certainly doesn't help anything, but I believe SEC enforcement was pretty bad even in the Obama era.
 
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