• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Elon Musk being sued for fraud by SEC

Discussion in 'Investing/Trading/Cryptocurrency/Altcoins' started by Bryan James, Sep 27, 2018.

  1. Bryan James
    Offline

    Bryan James Bronze Contributor Speedway Pass

    Messages:
    117
    Likes Received:
    174
    Joined:
    Jul 1, 2018
    Gender:
    Male
    Rep Bank:
    $875
    So the SEC has officially filed a subpoena for Elon under the charge of fraud after he tweeted about taking Tesla private, then reversing. Stock price dropped immediately and after-hours stock price looks really bad. I'm an investor (not in Tesla) so I tend to look at business news from that perspective. I'm curious, what do you guys (or ladies) see for Tesla and their shareholders within the coming months/year? Obviously it's not good for the very short term but what about long term? Think Tesla will recover or only get worse? I'd love to hear your thoughts on this. Thanks.
     
    ruzara5, ZF Lee and Arun Siva like this.
  2. Arun Siva
    Offline

    Arun Siva aspiring 大君 of the bourgeoisie Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass Summit Attendee

    Messages:
    1,129
    Likes Received:
    1,781
    Joined:
    Aug 31, 2016
    Location:
    NORD-TRONDELAG
    Rep Bank:
    $12,060
    Although I respect Musk hustle and intelligence he is clearly a shady MFer.... I dont agree with everything the sovereign man simon says but he has been spot on regarding tesla and musks activities.... Its the price he pays for competing with the big dogs in energy (oil) and automotive industries....

    More hilarious facts about Tesla from a hedge fund manager who's short the stock

    Betting Against Tesla: Short-Sellers Make Their Case

    This is from sovereign man.
    "
    August 28, 2018
    Sovereign Valley Farm, Chile

    There’s no doubt you know the story…

    On August 7, in the middle of the trading day, Tesla founder Elon Musk surprised investors with a tweet saying he was considering taking Tesla private at $420 per share (a $72 billion valuation) with “funding secured.” He quickly followed up with “Investor support is confirmed.”

    Shares of Tesla soared 13% to $387 on the cryptic social media update from Tesla’s exalted chief.

    The news created a media frenzy around the already red-hot company (and prompted the SEC to investigate Musk and Tesla for potentially lying to investors about a takeover). A single tweet – while the market was still open, no less – was an odd and informal way to announce such a major event.

    Did Musk consult Tesla’s board of directors before making this public? Did they even know of his plans to take the company private? Is any of this even true?

    It didn’t matter to Tesla’s shareholders, who believe Musk walks on water and his tweets are gospel. So the stock price soared.

    And the deal made sense for Musk…

    Investors, including himself, would make a fortune.

    And he would no longer be bothered by those pesky short sellers, reporting enormous losses to the public and nagging production deadlines (which Teslacontinually misses)…

    As a private company, Musk wouldn’t even have to ask shareholders’ permission for a $50 billion pay package.

    Only, Tesla isn’t going private.

    Last Friday, in a blog post (you know the announcement has got to be important if it’s escalated to blog post formality) Musk announced Tesla would stay public.

    He gave a bunch of excuses for the decision, including going private would be more time consuming than he realized and that his beloved retail shareholders (his congregation) couldn’t own shares in a private company.

    Tesla shares sold off yesterday and now trade more than $20 below the price before Musk announced the go-private deal.

    Once again, Elon Musk made a grand claim to shareholders and didn’t back it up.

    I am honestly curious how this guy has any credibility left with shareholders. How many times do people need to be misled, lied to and underwhelmed before they finally realize that Elon Musk is not going to walk across water and deliver.

    Here’s the big thing Tesla shareholders are missing… you have to separate the vision from the product and the product from the business. They are three separate things.

    I’ll be the first to say that Elon has incredible vision, well visions. He wants to save the world from Skynet, go to Mars, eliminate traffic, build a hyperloop, save Thai boys from a cave. He has lots of great ideas.

    And, even better than that, he actually puts effort into making these ideas happen. Lots of people come up with ideas, but few actually take steps to put them into action.

    For example, Musk proposed an underwater submarine to save the Thai boys. It turns out it was a bad design and wouldn’t have worked. But at least the guy came up with the idea and threw resources at it.

    Simply put, there just aren’t a lot of action takers in the world.

    And there’s no doubt Tesla has a great product. It’s a cool, fast car with good tech behind it.

    But the vision and the product are different than the actual business.

    And the business is a disaster.

    Tesla—the business-- has a history of constantly overpromising and underdelivering – losing money, missing deadlines and sending the stock up and down along with Musk’s Twitter bullshit.

    It’s incredible that the stock rises and falls based on Musk’s tweets. He’s proven time and again, the market shouldn’t put any weight into what he says. Still, he looms as this cult figure.

    But if you separate his personality from Tesla, what are you left with?

    You have a company that’s hemorrhaging cash ($717 million in the last quarter), losing money on every vehicle it sells and building what is arguably the most expensive manufacturing facility ever created in the history of the world (the Gigafactory).

    Executives are leaving in droves and the company can’t recruit a COO. That sole fact, by the way, should terrify shareholders. One of the sexiest, high-flying companies in the world today can’t recruit a top executive…

    Oh, by the way, even with everything above, Tesla is worth more than BMW, General Motors and Ford (companies with long operating histories, actual profit and large dividends).

    The old car manufacturers might not have the vision of Musk. But they do have great products and great businesses.

    The ideal investment has all three traits – great vision, great product and a great business.

    At the end of the day, if you’ve got vision and a great product, but the business is crap… it doesn’t matter. Because you’re investing in the business.

    This fact should be painfully obvious.

    Yet there seem to be, literally, millions and millions of people who are blindly throwing money at Tesla (the money-losing business) based on their beliefs about Elon’s grand vision or the quality of the products.

    It’s become so absurd that a single Tweet can literally create or destroy tens of billions of dollars of value in the company’s stock despite a track record of not being able to back it up.

    Fool me once, shame on Elon.

    Fool me twice, shame on anyone crazy enough to believe such unfiltered garbage.
    "
     
    fmob007, amp0193, Zhyna and 7 others like this.
  3. The Abundant Man
    Online

    The Abundant Man Silver Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    867
    Likes Received:
    988
    Joined:
    Jul 3, 2018
    Gender:
    Male
    Rep Bank:
    $5,028
    All I know is that I can't wait for self-driving electric vehicles. It's the future.

    Tesla will recover.
     
  4. Arun Siva
    Offline

    Arun Siva aspiring 大君 of the bourgeoisie Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass Summit Attendee

    Messages:
    1,129
    Likes Received:
    1,781
    Joined:
    Aug 31, 2016
    Location:
    NORD-TRONDELAG
    Rep Bank:
    $12,060
    i hope so too. but it will not come without a fight from the grumpy ole bastards lol
     
  5. MJ DeMarco
    Online

    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    26,938
    Likes Received:
    84,670
    Joined:
    Jul 23, 2007
    Gender:
    Male
    Location:
    Phoenix, AZ
    Rep Bank:
    $357,399
    Admin Post
    Doesn't surprise me, as a private citizen you can make comments on certain things, but not as an executive in a public company. It's security manipulation -- when he said it I knew he just stuck his foot in some big doo-doo.
     
  6. Bryan James
    Offline

    Bryan James Bronze Contributor Speedway Pass

    Messages:
    117
    Likes Received:
    174
    Joined:
    Jul 1, 2018
    Gender:
    Male
    Rep Bank:
    $875
    Right about it being security manipulation. My guess is that this was his way of trying to scare short-sellers and thereby raise the stock price. From what I know, he really has a problem with his short-sellers.
     
    Xeon likes this.
  7. The Abundant Man
    Online

    The Abundant Man Silver Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    867
    Likes Received:
    988
    Joined:
    Jul 3, 2018
    Gender:
    Male
    Rep Bank:
    $5,028
    Yeah I'd go private too if Short Sellers kept bothering me.
     
    ApparentHorizon and Bryan James like this.
  8. Bryan James
    Offline

    Bryan James Bronze Contributor Speedway Pass

    Messages:
    117
    Likes Received:
    174
    Joined:
    Jul 1, 2018
    Gender:
    Male
    Rep Bank:
    $875
    The problem is that he later said he won't after all. Security manipulation.
     
    Arun Siva likes this.
  9. MJ DeMarco
    Online

    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    26,938
    Likes Received:
    84,670
    Joined:
    Jul 23, 2007
    Gender:
    Male
    Location:
    Phoenix, AZ
    Rep Bank:
    $357,399
    Admin Post
    Stock took a beating today as well, pretty significant % move.
     
    Bryan James likes this.
  10. ApparentHorizon
    Offline

    ApparentHorizon Gold Contributor Speedway Pass

    Messages:
    709
    Likes Received:
    2,044
    Joined:
    Apr 1, 2016
    Location:
    Greenville, SC
    Rep Bank:
    $7,453
    upload_2018-9-28_18-39-2.png
     
  11. ChrisV
    Offline

    ChrisV Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    1,154
    Likes Received:
    1,751
    Joined:
    May 10, 2015
    Gender:
    Male
    Location:
    Islands of Calleja
    Rep Bank:
    $11,554
    Anyone who’s not buying a sh*tton of Tesla stock right now it totally nuts. It’s on sale. Get it while it’s hot.
     
    Bryan James likes this.
  12. ChrisV
    Offline

    ChrisV Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    1,154
    Likes Received:
    1,751
    Joined:
    May 10, 2015
    Gender:
    Male
    Location:
    Islands of Calleja
    Rep Bank:
    $11,554
    they whine about everything, then eventually lose. f--- ‘em.
     
  13. lowtek
    Offline

    lowtek Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    1,159
    Likes Received:
    3,584
    Joined:
    Oct 3, 2015
    Gender:
    Male
    Location:
    Phoenix, AZ
    Rep Bank:
    $23,993
    on the topic of self driving cars... you can pry my manual transmission from my cold dead hands.

    On the topic of Elon, I knew as soon as he pulled that stunt he was screwed. No idea what he was thinking. Dude has lost his friggin mind.
     
    jon2089, BrooklynHustle and Thoelt53 like this.
  14. ChrisV
    Offline

    ChrisV Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    1,154
    Likes Received:
    1,751
    Joined:
    May 10, 2015
    Gender:
    Male
    Location:
    Islands of Calleja
    Rep Bank:
    $11,554
    I thought I was the only one left! I literally had my Mercedes shipped up from Florida because you can’t find standard Benzes anywhere.
     
    Arun Siva and lowtek like this.
  15. biophase
    Offline

    biophase Legendary Contributor I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    5,982
    Likes Received:
    25,541
    Joined:
    Jul 25, 2007
    Location:
    Scottsdale, AZ
    Rep Bank:
    $171,646
    I got lucky, I sold my Tesla options on Tuesday. But I also sold Amazon that morning so it’s a wash for me.
     
    ChrisV likes this.
  16. ChrisV
    Offline

    ChrisV Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    1,154
    Likes Received:
    1,751
    Joined:
    May 10, 2015
    Gender:
    Male
    Location:
    Islands of Calleja
    Rep Bank:
    $11,554
    damn.... well at least you didn’t tank

    my point is: i think it’s highly unlikely that tesla is gonna stay down, so might as well grab it while it’s cheap
     
  17. BrooklynHustle
    Offline

    BrooklynHustle Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    706
    Likes Received:
    1,388
    Joined:
    Apr 3, 2014
    Gender:
    Male
    Location:
    DMV
    Rep Bank:
    $9,418
  18. The Abundant Man
    Online

    The Abundant Man Silver Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    867
    Likes Received:
    988
    Joined:
    Jul 3, 2018
    Gender:
    Male
    Rep Bank:
    $5,028
    Last edited: Sep 29, 2018
    Bryan James likes this.
  19. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,506
    Likes Received:
    11,022
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $51,190
    Musk is going to build a space bank on Mars and give the SEC the finger in 10 years.
     
    amp0193, GPM, jon2089 and 5 others like this.
  20. ChrisV
    Offline

    ChrisV Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    1,154
    Likes Received:
    1,751
    Joined:
    May 10, 2015
    Gender:
    Male
    Location:
    Islands of Calleja
    Rep Bank:
    $11,554
    Last edited: Sep 29, 2018
  21. craig1928
    Offline

    craig1928 Bronze Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    311
    Likes Received:
    483
    Joined:
    Jul 31, 2012
    Location:
    Dublin, Ireland
    Rep Bank:
    $1,917
    most people over here drive manual
     
    jon2089 likes this.
  22. jon2089
    Offline

    jon2089 Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    62
    Likes Received:
    116
    Joined:
    Feb 11, 2017
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $547
    It was just settled. Elon loses chairman position for 3 years but still remains CEO and also has a $20 million fine. Tesla the company is also fined $20 million


    Sent from my SM-G930P using Tapatalk
     
  23. jon2089
    Offline

    jon2089 Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    62
    Likes Received:
    116
    Joined:
    Feb 11, 2017
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $547
    Manual in the states are only in the cheapest cars under $20k or in sports cars like the Corvette or 911, nothing in between. If you want a sunroof you lose the manual option, want heated seats lose the manual option. I think less then 2% of cars have a manual if I recall.

    Sent from my SM-G930P using Tapatalk
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page