5 Things to Know About the SEC’s Complaint Against Elon Musk
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Here are five things to know about the allegations being made by the SEC in a case that could spell the end of Musk’s reign at the electric car maker that he co-founded.
BUYOUT TALKS
The SEC conducted interviews confirming that Musk had been holding talks with a sovereign investment fund — identified by
“The meeting lacked discussion of even the most fundamental terms of a proposed going-private transaction,” the SEC alleges.
A BUYOUT PRICE CHEECH AND CHONG WOULD LIKE
What’s more, Musk floated the buyout price because 420 is slang for marijuana — a now legal drug in
The SEC determined that Musk came up with that figure because it was 20 percent above
HELPING HAND FROM CFO
Musk’s out-of-the-blue move apparently blindsided
“Elon, am sure you have thought about a broader communication on your rationale and structure to employees and potential investors,” Ahuja texted Musk 35 minutes after he dropped his bombshell on Twitter. “Would it help if (
Musk texted back: “Yeah, that would be great.”
SPREADING THE MISINFORMATION
After
An unnamed
The SEC said
WHO WILL GET BURNT IN THE END?
The SEC noted that Musk has had a long-held antipathy against “short sellers” — investors who had been placing bets that
The complaint notes that Musk hinted that the short sellers were about to be seriously hurt in a tweet that warned: “Oh and uh short burn of the century comin soon. Flamethrowers should arrive just in time.” Then in a tweet, Musk wrote that short sellers “have about three weeks before their short position explodes.”
With