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Well just thirty minutes ago we got some absolutely devastating news for anybody out there who’s a tesla shareholder anybody out there who is a fan of electric vehicles in the electric vehicle wave anybody who’s a fan of elon musk’s some really really bad news just happened so we got to talk about if if elon musk is done at tesla now basically he’s being sued by
The sec we’re gonna talk about what that actually means and it’s really bad guys it’s really bad we’re obviously a tesla shareholder i’m gonna talk about if i’ve already sold out my shares or if i’m gonna sell out my shares we got a lot to get into here in today’s video guys but this is bad news nonetheless tesla ceo elon musk has been sued by the securities and
Exchange commission for fraud according to court documents filed thursday sources close to the company told cnbc that the company was also expecting to be sued okay though tesla was not named as a defendant in the complaint the sec complaint alleges that musk issued false and misleading statements and failed to properly notify regulators of material company events
Sec plans to hold a press conference here within about 15 minutes from me recording this video in august must tweet it that he considered taking tesla private adding the funding secured the tweet spurt obviously a scandal ridden for tesla and tesla shares blew up that day they went to the you know three hundred eighty something dollars a share according to musk
He calculated the four hundred and twenty dollar price share based on a 20 percent premium over that day’s closing share price and thought 20 percent was a standard premium and a-goin private transaction the sec alleged in the suit this calculation also resulted in a price of four hundred nineteen dollars and mucks stated he rounded that price to four hundred
Twenty dollars because he recently learned without the numbers significance in marijuana culture and thought his girlfriend would it would be a funny thing basically it’s bad it’s bad tesla’s board of directors initially formed a special committee to evaluate the take private proposal but musk ultimately called off privatization plans back in august 24th as you
Guys know okay as of now looking at tesla stock is down over eight and a half percent after-hours okay the essence has come from the sec now musk made his false and misleading public statements about taking tesla private using his mobile phone in the middle of an active trading day the sec said did not discuss the content of the statements with anybody else prior
To publishing them – over his 22 million twitter followers and anyone else who has access to the internet he also did not inform the nasdaq that he intended to make this public announcement as nasdaq rules required all right so this is a really bad situation guys basically what all this means is elon musk obviously being accused by the sec of misleading investors
So what this means is the sec is seeking an order that will no longer i’ll ever allow you on must to serve as an executive officer or officer of any kind or director of any kind of any public company ever again for as long as he lives which means his days of being the ceo of tesla are effectively over guys effectively over okay we’re gonna talk about if he has any
Role in tesla we’re gonna get into that now a lot of people you know we’re kind of like they believe you know i’m so bullish on tesla and they’re like when i bought my tesla shares here you know was that three weeks ago or whatever about ten thousand four hundred dollars worth and people are like why why not go super heavy why not you know you believe in this company
So much why not load up on a ton of shares of tesla and my thing was this was my spec stock and and you know it’s it’s carefully stock because of this whole thing was still behind the stock you never knew if the dominoes could fall so what this means is basically the chief executive officer elon musk is done at tesla now from what i have seen it does not mean that
He cannot work for tesla anymore or he can’t be involved with the company if basically what it means is is going to be a complete overhaul in the board of directors of tesla likely all right also once again he’s not going to be able to be chief executive officer of this company or any public company ever in the future and so the big question is will a la musk you
Know be willing to a lower role at tesla you know here down the road when all this fall out kind of ends will he be willing to take a lower role i think it would be obviously a very beneficial thing for him for the company i think his role is important with the company you know a chief executive officer that can be run by somebody who you know who doesn’t that’ll
You know tweak crazy stuff in the middle of the day that the company’s going to go in private or something like that you know you can get someone in there that that can be very helpful in that respect but elon must should he really have stole some type of role at tests on my opinion he’s helped the company get to where it’s at he’s built an unbelievable brand an
Unbelievable excitement around electric vehicles and self-driving vehicles i think he would think it would be sad if he had no role at tesla if he if he can’t be ceo he and p ceo but he should have some type of role in the company i think also shareholders if you’re if your tesla shareholder out there your tesla supplier i think just the fact that allah musk would
Still be working at the company would make you feel comfortable that this guy that the gray and visionary can still at least have a role in the company maybe he doesn’t have that ceo role anymore maybe he’s not the chairman of the board anymore and have those type of titles but at least giving a positive impact to the company in the terms of executing the grand
Vision he has for this company for you know last decade so that’s the question will he be willing to you know take her to take a much much lower role in stay on with the company but once again he’s not gonna be able to be the chief executive officer of tesla it looks like and he’s not gonna be allowed to be a public officer of any kind for for any public companies
In the future so now as far as me am i gonna go ahead and solve my shares have i already sold off my tesla shares and whatnot this is obviously you know a huge question i’m super bullish on tesla i believe in the company so much for the future you know i didn’t even once again i’m just i sec ting this information like i just got this information like 15 minutes ago
So it’s not like i had a ton time to take think over this where my head is out right now is i think i’ll just hold the stock okay my cost basis is like 263 or 264 dollars or something i think i’ll just hold the stock for now and once again this is my spec stock so when being my one spec stock out there you kind of gotta be willing to go through everything when
You hold a stock like that the positive the negative and i think this company still has a great opportunity in front of it for to become a massive massive goliath company someday but in the short term here this is going to be a mess because basically we go i must is like we gotta have to step down from the board from cheeta from being ceo we’re not going to know
If he’s gonna have any role with the company anymore is what type of fine is he have to pay you know are they gonna try to pursue jail time of any time or any kind or anything like that like there’s got to be a mess here in the short term there’s gonna be a lot of volatility there’s gotta be a lot of news stories some accurate some not accurate and so right now
In the short term tesla is gonna be an absolute mess but when you look at it from a long-term future i still think this company has an unbelievable opportunity in front of them they’ve got to get someone that can be ceo in a very professional manner obviously but they got to get somebody that can also be a visionary for the company so not just somebody that’s a
Penny pincher or somebody that is just thinking about the numbers they gotta be have somebody run that company who you know can do a very good job when i look at a couple people i think of sheryl sandberg over there are facebook she’s a number two at facebook behind zuckerberg she’s done an amazing job with that company over the years although you know facebook’s
Been involved with some stuff in the past they’ve still built that company into being a massive company and they should be you know went into the future when i think about what tim cook has done with apple you know he took over for steve jobs steve jobs was obviously the visionary of the company apple’s done nothing but succeed more and more than then ever thought
Possible since tim cook took over he’s done an amazing job kind of helping execute the visions and steve jobs had in place there so we need somebody that can help execute the visions for tesla going forward but this is bad news guys just across the board you know sad day sad day for tesla shareholders sad day for tesla suppliers sad day for anybody who’s in in
Excited about electric vehicles self-driving vehicles because i you know it looks like literally a muskie is gonna be likely done at tesla at least from the executive roles and board of directors like i said it’s possible he could maybe take a lower lower ranking because that’s not a ceo position or an officer of any kind or director of any kind but once again
We don’t know if he’ll want to take that he’ll butt heads with people and things like that you know because there’s one thing to be in charge of the full company then on suddenly you have to take a whale or lower role you know with the company and you know the ceo says oh you’re doing this wrong and that wrong and then i’ll send you like hey man you know this is
This is my vision here you’re taking away from my vision it’s a mess guys it’s a mess as bad news that’s all i have to say it’s bad news anyways i want to hear you guys opinion down there in that comment section thank you for watching and have a great day you
Transcribed from video
ELON MUSK CHARGED WITH FRAUD BY SEC By Financial Education