In the fall of 2018, it seemed that Ilon Mask successfully avoided a possible prosecution for the deliberate distribution of misinformation that affected Tesla's share price. Then the entrepreneur announced the possibility of buying back company shares and lied that the necessary financing was already available for this.
Investors thought that Tesla was much stronger and more stable than expected. Not every company can easily carry out a repurchase process with its listed securities. Little Mask scam has led to major consequences. Firstly, the Tesla shares immediately increased in price. Secondly, it soon became clear that it was a banal bluff – after an increase of 10%, the shares of the company also plummeted. This gave cause to suspect Mask when manipulating stock prices. In the US this is a very serious accusation.
The case is interested in the US Federal Securities and Exchange Commission (SEC), which accused Mask of fraud. The committee appointed an investigation at Tesla, after which Mask was found guilty. Negotiations took place. The businessman managed to settle the case in pre-trial detention and to sign an agreement with the SEC.
Based on his terms, Musk resigned from the position of the Tesla board of directors and promised not to return there for three years. He also paid a $ 40 million fine and committed not to publish any financial or stock market information about Tesla without the approval of the regulator. The agreement was later approved by the New York court. But the Mask, this situation apparently has learned nothing.
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Musk went on the same rake in February. In particular, the large American combinator and entrepreneurial marketer wanted to ensure that there were no complaints about him. But wrong.
February 19 Twitter Mask I wrotethat "Tesla will produce 500,000 cars in 2019". And only a day later he recovered: "By the end of 2019, the annual production volume was expected to reach around 500 thousand cars. That is, 10 thousand cars per week. Deliveries for the year are still estimated at 400 thousand. "
This "inaccuracy", as well as the time that elapsed between the first message and the "clarification," served as a pretext for new charges. The calculation mask was simple. If he simply published false information about Tesla shares in August 2018, it was arranged here as if it were just a minor inaccuracy, which was later clarified. And bribes are smooth.
But the SEC recommended this plan and started playing big. The rates have already risen since last time. The committee immediately appealed to the New York Court for the purpose of ensuring the recognition of Ilon Musk who is guilty of disdain. It was intended that the businessman, through his actions, questioned and violated the decision of the court that approved the agreement between him and the SEC. SEC also said that Mask's plans for the production of Tesla cars in 2019 are misleading investors. This immediately raises the question: Musk had promised to coordinate his Twitter messages with the SEC, why didn't this happen?
Photo: Sergio Monti Photography / shutterstock.com
The commission admitted in a court of law disputed that its representatives were reviewing Masker's messages, but not before, but after publication. And in this case, after seeing the clearing a day later, they only reported this to management.
This moment immediately became a clue for Mask's lawyers. They stated that the report "contained no material information", so the Commission found nothing similar at the time.
In fact, this would be enough to bring the mask to justice. And under the criminal article for fraud. But the SEC delay finally gave Masker one last chance.
According to CNN, at a meeting of the New York court on Thursday, April 4, Judge Allison Nathan had to decide whether Musk violated the terms of his previous agreement with the SEC. And the judge couldn't draw an unequivocal conclusion.
It was reported that a "Solomon & # 39; s decision" had been made: the mask was given two weeks to discuss the conditions for compliance with the regulator. The judge urged the parties to "be careful" to prevent legal proceedings. In particular, the parties to the new version of the agreement are instructed to clarify the paragraph on the mask coordination procedure on Twitter.
In the meantime, the public prosecutor took a tough stance. Representatives of the SEC in court argued that with Mask, at least, a fine should be levied for another lie. But the businessman's lawyers said he "stuck to the agreement," and the information he published is not new or deceptive. Mask, who was present at the meeting, shouted when he heard the judge's conclusion.
We have always believed that we should have the opportunity to cooperate with the SEC in the event of disagreement and not to go to court on any occasion. Today this position was confirmed by Judge Nathan,
– Musk told CNN, not hiding his joy.
But it is too early to rejoice. As indicated by the TV channel, if the judge is ultimately on the side of the regulator, Musk may be confronted with a new million of fine and additional restrictions on the use of social networks. The court can also completely reject Mask from his position as head of Tesla. Finally, a judge can give a course for a full trial between the SEC and Musk, which can result in the punishment of a businessman under criminal law, and this is already a prison sentence.
What could be the reason for such a soft decision by the judge at this stage? After all, the petition was not only addressed to a specific physical or legal person, but to an entire American industry regulator. Experts explained to CNN that Judge Nathan simply did not want to harm the shareholders of Tesla & # 39 ;.
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A radical decision by the judge without attempts to convince the parties to resolve the controversial issue "on the shore" would be a blow to the company's capitalization. And we remember that Musk is a marketing project from the US government, and not just the head of Tesla, even if it is temporarily removed from the office. Well, as well as a great futurologist and ideologist of space progress, who implements SpaceX company. Such a stroke is simply not needed by Washington, but there is a limit to everything.
The escalation of the situation and the unstable behavior of Mask have caused many investors to think about what the consequences could be for Tesla if the famous CEO is removed from the company's management. Barclays analyst suggested that the Tesla shares have a "Mask Award" of $ 130, which could disappear if it left,
– notices channel.
These two weeks will therefore show how far the SEC can go in its limits, and how daring the regulator is to spit against the wind. Mask also feels for government support, even though it is really small. But she is. It is also clear that investors have less and less confidence in the mask. Last fall it seemed that the scammer tried to mislead everyone again, but got what he deserved. He was silent afterwards and investors believed it was just an accident.
In February it turned out that Musk is simply pathologically unable to lie to earn money. And now he is remembered in one go: his promises about the bright future of solar energy, and promises to create underground super-fast tunnels for cars, where special platforms would move cars at incredible speed, as well as all ambitious space exploration projects from SpaceX.
The point is simply that Musk is not an investor, as he was mentioned earlier. And not a brilliant developer of technologies of the future, but just an entrepreneurial marketer who earned $ 21 billion in public relations and empty promises. And now, it looks like they left the last two weeks, he got the last chance to think again. However, there are more doubts in this outcome of the case.