Skip to main content
No. of Recommendations: 2
I don't think the baseless accusations originally flung had anything to do with this particular idiocy, but...

“The total package of remedies and relief announced today are specifically designed to address the misconduct at issue by strengthening Tesla’s corporate governance and oversight in order to protect investors,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

As a TSLA investor, I followed this debacle closely, and the harm to investors was all caused by the SEC's misguided actions, not by Musk. They were doing nothing but protecting short-sellers, and their actions caused TSLA to tank.

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms —including an obligation to oversee Musk’s communications with investors—and both will pay financial penalties,” added Steven Peikin, Co-Director of the SEC’s Enforcement Division. “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders.”

The hilarious thing about this "punishment" is that the SEC fined Musk $20M and Tesla $20M. Musk bought $20M worth of new TSLA shares so that the company wouldn't be harmed by the fine. Those shares (about 71,000 then, and now about 355,000 due to a 5:1 split) are now priced at $625, and worth over $220M. Since Musk has never sold any shares, in effect the SEC awarded him $180M. Some punishment. Apparently the job of being "not chairman" pays quite well.

The SEC got their punishment right to about the same degree as their initial complaint. It was all BS. The only reason there was a settlement is because the distractions caused by fighting the SEC weren't worth it.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.