For those following Tesla, here is an hour-long interview (episode 62 of podcast) between the highly intelligent Demetri Kofinas of Hidden Forces and Lawrence Fossi, (pen name, “Montana Skeptic”). The interview touches upon several of our recent posts including the company’s poor business model, debt load, and waning subsidies (reliance upon confiscation of taxpayer dollars, essentially).
“It was announced yesterday afternoon that the Securities and Exchange Commission has charged Elon Musk, CEO and Chairman of Silicon Valley-based Tesla Inc., with securities fraud for a series of false and misleading tweets about a potential transaction that would have taken Tesla private. The SEC’s complaint alleges that, ‘in truth, Musk had not discussed specific deal terms with any potential financing partners, and he allegedly knew that the potential transaction was uncertain and subject to numerous contingencies.’ Steven Peikin, Co-Director of the SEC’s Enforcement Division, was quoted as saying: ‘Corporate officers hold positions of trust in our markets and have important responsibilities to shareholders. An officer’s celebrity status or reputation as a technological innovator does not give license to take those responsibilities lightly.’
It has been reported that Elon Musk turned down a settlement offer by the SEC that would have included a 2-year ban on serving as Tesla chairman, a fine for both Musk and Tesla, and a requirement that Tesla add two new independent directors. Musk would not have been required to admit wrongdoing, and he could have remained CEO. In a statement to CNBC, Musk said, ‘This unjustified action by the SEC 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.’”
