Elon Musk is in the shit once again, this time thanks to a lawsuit filed against him by the US Securities and Exchange Commission alleging stock fraud over a Tweet Musk posted in August that sent Tesla stock prices bananas.
The yarn goes thusly: Musk, who tweets like a 14-year-old child who keeps getting his ass beaten sideways in Fortnite, posted this on August 7th:
Am considering taking Tesla private at $420. Funding secured.— Elon Musk (@elonmusk) August 7, 2018
A very smart tweet from a man with a certified Bigg Brain™.
The only problem with that, according to the SEC’s lawsuit, is that funding was definitely not secured, and Musk allegedly did this fully in the knowledge that he was never going to take the company private, and that he knew it would send the stock price all over the place. Which, you don’t have to be a fancy big city lawyer to recognise, is fairly open-and-shut fraud.
The SEC lawsuit is seeking to remove Musk as the head of Tesla and bar him from serving as a director or executive of a publicly traded company in the future. Tesla itself is not named in the suit.
Among the many wild revelations contained in the suit, arguably the most batshit one is the claim that Musk ran his numbers and came up with a prospective sale price of $419, which he then rounded up in the Tweet because 420 is the weed number and he thought it’d make Grimes laugh.
According to Musk, he calculated the $US420 ($581) price per share based on a 20 per cent premium over that day’s closing share price because he thought 20 per cent was a “standard premium” in going-private transactions. This calculation resulted in a price of $US419 ($579), and Musk stated that he rounded the price up to $US420 ($581) because he had recently learned about the number’s significance in marijuana culture and thought his girlfriend “would find it funny, which admittedly is not a great reason to pick a price.
420, folks. It’s the weed number.
For his part, Musk has issued a statement via Tesla stringently denying all allegations, asserting that he believed he had the funding secured at the time of the tweet.
This unjustified action by the S.E.C. leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.
This lawsuit is the latest in a string of legal issues brought before Musk, which includes a defamation lawsuit launched by a chief organiser of the Thai cave rescue dive efforts, who Musk called a “pedophile” after Musk’s child-killing submersible death tube was summarily ridiculed.
You can read the entire lawsuit via this link. It’s an incredible read.
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