Mega Thread for Tesla Investors

OMG, this is new and surprising! The loud mouthed most iilogical Tesla supporter finally gets fed up with Tesla board!
First Gene Munster gives up after yelling for months on TV. Now this guy. Ross has been the laughing stock of the Tesla shorts circles for a long time.
Ross Gerber Says He's Lost All Confidence in Tesla's Board
https://www.bloomberg.com/news/vide...-s-lost-all-confidence-in-tesla-s-board-video
Gems:
1. Company is doing phenomenally well. (?)
2. I can run Tesla better than Elon.


PS: Pushy is too **** to understand that I simply copy pasted the title here.
 
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interestedinEV said:
...I am sure they will negotiate down something and allow him to stay on Chairman
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Well obviously Musk believes he can either negotiate that down or win in court, or he would have taken the offer.

There is a wide spectrum of opinions offered in comments to IEVs news articles on this subject. Everything from "The SEC has overplayed its hand, even some reporters at the press conference indicated so with their questions"... to "The SEC put up a ladder for Elon to escape, but he foolishly clawed it away."

Again, I'm not a "financial guy" so I don't know enough to offer an opinion. I initially thought, based on what others who know more said, that the SEC would just give Tesla a moderate fine and a personal wrist slap for Elon. But clearly the SEC has decided to treat this as a more serious matter. Some say that's because Elon isn't showing the penitent attitude the SEC expects in such cases. Again, I don't know.

* * * * *

Stay tuned for the next thrilling chapter in our soap opera, "As the Wheels Revolve, or What's a South-African-Canadian-American Billionaire Entrepreneur-Inventor Rocket Scientist Visionary Futurist to Do?"

(And... what about Naomi?)
;)
 
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Pushmi-Pullyu said:
Well obviously Musk believes he can either negotiate that down or win in court, or he would have taken the offer.

There is a wide spectrum of opinions offered in comments to IEVs news articles on this subject. Everything from "The SEC has overplayed its hand, even some reporters at the press conference indicated so with their questions"... to "The SEC put up a ladder for Elon to escape, but he foolishly clawed it away."

Again, I'm not a "financial guy" so I don't know enough to offer an opinion. I initially thought, based on what others who know more said, that the SEC would just give Tesla a moderate fine and a personal wrist slap for Elon. But clearly the SEC has decided to treat this as a more serious matter. Some say that's because Elon isn't showing the penitent attitude the SEC expects in such cases. Again, I don't know.

* * * * *

Stay tuned for the next thrilling chapter in our soap opera, "As the Wheels Revolve, or What's a South-African-Canadian-American Billionaire Entrepreneur-Inventor Rocket Scientist Visionary Futurist to Do?"

(And... what about Naomi?)
;)
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At this point, I'm not going to try to predict the future, but it seems that Elon isn't too worried about it (see image below). I'd like to think that, since he turned down the deal, he thinks he could win, but I wouldn't be surprised if the decision was based more on the sense that he feels he's done nothing substantially wrong.
dont panic.webp
 
New revealing article on the SEC deal falling apart. If Elon is so naive, after being CEOs of multiple companies for decades and raising funds for countless number of times, as his lawyers' letter claimed, then he should leave the CEO role just out of shame. No SEC indictment needed. :)

Recall that he makes his customers pay in advance and sign MVPA before selling a car. But when it comes to purchasing a sick company for $80 billion, he thought that just a dinner talk with some guy from Saudi fund was enough! Nevermind that Saudis have denied that too.
If Tesla executives are found complicit in this, we may see the whole gang ousted at once. The CFO also just asked Elon to send out an employee email and put out a blogspot to make teh tweet look legit. This is not looking goo for Tesla.
The best solution was for the board to kick him out and move on with Tesla business.

https://www.nytimes.com/2018/09/28/business/elon-musk-tesla-sec-deal.html
Mr. Musk and other Tesla executives told Tesla’s board about the talks with the Saudis, the lawyers wrote, according to the person familiar with the letters. On Aug. 3, Mr. Musk shared his idea for the $420 share price with the board.

It was an Aug. 7 Financial Times story that spurred Mr. Musk to action, the lawyers said in the letters to the commission. An alarm bell went off when he saw the newspaper’s report that the Saudis had built up a significant stake in Tesla. He feared that word would get out that a deal to take Tesla private was possible. So he began to tweet, the lawyers said.

His tweets, the lawyers wrote, were sent in good faith. He believed that the Saudis were capable of doing a deal and interested in doing one, and that what remained was a matter of details, according to the person familiar with the letters.
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Pushmi-Pullyu said:
No, "corporate officers" are the Board of Directors, and in some larger companies, a very few others (such as the CEO) who are given general management authority over the entire company by the Board.
​
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I am not lawyer or anything like but, I do not think that is right. There are two sets of people one is the Board of Directors and other is Corporate Officers. I googled it and there are several articles on this including the link below. State rules govern how many corporate officers there need to be at the minimum and a person can be both a director and a corporate officer, each group having its own fiduciary responsibilities. It may be different for HOA and non profits, but for corporations this is general rule, that the Board designates a set of corporate officers.

https://corporations.uslegal.com/basics-of-corporations/shareholders-directors-and-officers/
 
interestedinEV said:
I am not lawyer or anything like but, I do not think that is right. There are two sets of people one is the Board of Directors and other is Corporate Officers.
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Okay, thank you for pointing out my error on this subject.

I made the mistake of generalizing from my own experience (a fallacy of Hasty Generalization) serving on the Board of Directors in a club where all the corporate officers were also board members. In a larger organization, it is apparently typical for these functions to be separate. Or at any rate, the article you pointed to (and others on the subject which I found with the help of Mr. Google) so indicate.

I remember discussion when the club was incorporated; the State of Missouri requires at least three corporate officers, which (if I recall correctly) were by default designated President, Vice President, and Treasurer, unless the organization specified other titles for its officers. In our club those positions became Director, newsletter Editor, and Treasurer.

Not that this has anything to do with who is or isn't a corporate officer at Tesla Inc.
;)
 
Pushmi-Pullyu said:
Okay, thank you for pointing out my error on this subject.
-----

I remember discussion when the club was incorporated; the State of Missouri requires at least three corporate officers, which (if I recall correctly) were by default designated President, Vice President, and Treasurer, u-------

Not that this has anything to do with who is or isn't a corporate officer at Tesla Inc.
;)
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Right if you noticed these three positions (President.....) need not be members of the Board of Directors, they usually are in most small organizations.

The reason for this discussion on corporate officers comes from the possibility that Elon Musk is sanctioned and told he cannot be a director or corporate officer for two years. My response that Elon can still be a senior executive in Tesla and run the show but he has to at least on paper be under the supervision of another executive. For example, let us say the Board creates a position of President and Chief of Engineering, Manufacturing and Sales and operations for the Tesla Division and appoints Elon to that position. The Board then creates a similar position for the Solar City Division (which can be carved out to be very small) and appoints another person who is ostensibly a peer of Elon, both reporting to the new CEO appointed by the Board. In this hypothetical situation, Elon is responsible for everything in the Tesla division but not in the Solar City division and there is an overall CEO who is the corporate officer minding the shop. Nothing really changes, but Elon is not considered as a corporate officer and hence can run the show the way he wants without running afoul of SEC. Again is this is hypothetical and very simplistic and is improbable. All I am trying to point out is that SEC actions may not have the bite or cripple Tesla they way that naysayers believe. The reaction to the SEC action in my opinion is, a storm in a teacup.

This is not to say that Elon did the right thing, he did not. This one incident is not the fatal blow.
 
TeslaInvestors said:
Tesla appears to have satiated Canada Model 3 LR demand. Probably rest is just AWD.
https://twitter.com/ElectronComm/status/1045407457797951488
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May: 456
June: 2329 <-- congrats bulls, EV record by a country kilometre
July: 115
August: 95 <-- congrats bears? ... and under 200,000 USA sales​

That is also the pattern of Tesla staying under 200,000 USA sales in Q2. Thus getting the maximum $7.5k Federal tax credit for Q3 and Q4.

Bob Wilson
 
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Domenick said:
Yup. September is going to be about 50. Probably. :D
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With the weekend and Sunday, does your team get an extra day to work the numbers ... if sources are available? Or would having the month end on a Friday give your team more quality time?

Bob Wilson
 
bwilson4web said:
With the weekend and Sunday, does your team get an extra day to work the numbers ... if sources are available? Or would having the month end on a Friday give your team more quality time?

Bob Wilson
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Since this is an end of quarter month, I'm not sure if they're doing their own estimate or just using the Tesla numbers when they come out. I imagine they'd prefer a weekend, but I don't know how much difference it makes to them.
 
So, this looks like this may impact the share price: Elon and Tesla settled with the SEC. He has to vacate the chairmanship of the board within 3 months and he and Tesla both have to pay $20 million.

This, combined with crazy end of quarter delivery numbers, I would not want to be short the shock come Monday.
 
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Personal opinion but even if Musk ‘won’ the suit, it would not reverse the perception that the “funding secured” was inaccurate.

Pay the fine and move on.

Bob Wilson
 
Domenick said:
So, this looks like this may impact the share price: Elon and Tesla settled with the SEC. He has to vacate the chairmanship of the board within 3 months and he and Tesla both have to pay $20 million.

This, combined with crazy end of quarter delivery numbers, I would not want to be short the shock come Monday.
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WOW: All this on a Saturday. I guess the Board and others put pressure on Elon to settle as this is not a distraction that the company needs. Fighting with the SEC requires time and effort and this was a fairly slam dunk case. $20 million to Elon is chump change, but to Tesla it is the margin from about 1900 Model 3 cars (assuming average sales price is $55,000 and margin is 20$, the average earning is $11,000 before other expenses per car. At a loss of $11,000 per car, they have sell about 1818 cars, say 1900 cars to make it up). Not disastrous but not good. Elon has to give up some power, which is good, there have two more outside directors which is also good. It would wise to get experienced people, known for both their integrity and ability to stand up to Elon and not connected to him in any way, but I am not sure that will happen. Both Elon and Tesla have to grow up and this may be time they begin their journey to adulthood.

The biggest casualty however may be Elon's ego. He refused the earlier deal, forcing SEC to sue him and then more or less agreed to the same conditions. This also could have been avoided.
 
Totally expected this, but didn't expect so soon. When Elon saw his bluff didn't work with SEC and they went ahead and filed a suit, he "panicked", though he twteeted out a picture of a dummy floating in the space with a title "Don't panic". Oh, all those foolish comments on forums latching onto one delusional SEC counselor's opinion that what Elon did is totally defensible :) Now will be a good time to look at their faces.

There is also the trick here, that first was a bad news and now this is good news.
Vs. if this came out first, that will be a bad news. But didn't Elon think this would jeopardize his running other companies that do business with the govt?

However, no one's Tesla short thesis was based on this. This is just bonus material Elon gave the shorts :p
Don't forget, the SEC lawsuit does not cover the losses incurred by the investors who traded based on the tweet. Those are additional billions of bonus losses. This settlement makes it little easier for those plaintiffs to win.
With Fed tax credit coming to an end and these other lawsuits piling up, I won't be long this stock beyond this year: :D

PS: And this comes just when I thought the day will be a slow day. So thought I'll take a long nap and do some chores around the house. But Elon lights up the forums again in an hour :)
 
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interestedinEV said:
Right if you noticed these three positions (President.....) need not be members of the Board of Directors, they usually are in most small organizations.

The reason for this discussion on corporate officers comes from the possibility that Elon Musk is sanctioned and told he cannot be a director or corporate officer for two years. My response that Elon can still be a senior executive in Tesla and run the show but he has to at least on paper be under the supervision of another executive.
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Your comment is rather timely, as it has now been announced that Elon has settled with the SEC; he will remain as CEO of Tesla, but give up his Chairman of the Board position for at least 3 years.

Does that mean he's no longer a corporate officer? It would seem strange to me that a CEO wouldn't be a corporate officer, but having exposed my ignorance on this subject, I'll decline to guess. ;)

I think Domenick already posted a link in his comment above, but here it is again:

From the InsideEVs news site: "SEC Settles With Musk: Remains Tesla CEO, No Longer Chairman"
​
 
interestedinEV said:
I guess the Board and others put pressure on Elon to settle as this is not a distraction that the company needs. Fighting with the SEC requires time and effort and this was a fairly slam dunk case. $20 million to Elon is chump change...
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I share your opinion. So far as I can see from the latest IEVs news article on the subject, Elon agreed to the very same deal that the SEC offered but he initially refused. Either he reconsidered, or more likely (as you say) Tesla's Board of Directors pressured him to take the deal.

Tesla might well be turning the corner to steady profitability. If Tesla is going to be announcing a significant quarterly profit a very few days from now, they don't need the distraction from this SEC suit hanging over Elon's head.

interestedinEV said:
The biggest casualty however may be Elon's ego. He refused the earlier deal, forcing SEC to sue him and then more or less agreed to the same conditions. This also could have been avoided.
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You took the words right out of my keyboard. ;) I was gonna write a lengthy comment saying the same thing, but you've said it better and more succinctly.
:) :) :)
 
Domenick said:
This, combined with crazy end of quarter delivery numbers, I would not want to be short the shock come Monday.
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Yup. I see "TeslaInvestors" is still posting deep-in-denial comments, keeping up a brave face, but I rather suspect that in truth, he's sweating bullets over what's going to happen to his "short" investment on Monday.

The question isn't whether or not there's going to be a TSLA short squeeze over the next few business days. The question is whether or not this particular short squeeze is going to be significantly bigger than any of the ones that came before it!
​
 
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