Jump to content
Create New...
  • 💬 Join the Conversation

    CnG Logo SQ 2023 RedBlue FavIcon300w.png
    Since 2001, Cheers & Gears has been the go-to hub for automotive enthusiasts. Join today to access our vibrant forums, upload your vehicle to the Garage, and connect with fellow gearheads around the world.

     

  • William Maley
    William Maley

    Rumorpile: Musk Could Have Settled With SEC, But Backed Out At the Last Minute

      Does someone want to tell Elon Musk that the end goal isn't to make the situation worse?

    Late Thursday afternoon saw a massive bombshell dropped; the SEC sued Elon Musk over securities fraud over his August tweet that he was considering taking Tesla private and having the "Funding secured." But a new report from CNBC said there was a possible settlement between the two where Musk would not have to admit guilt. However, Musk pulled the plug on the deal at the last minute.

    According to sources, this is what the proposed deal looked like,

    • Tesla and Musk would had to pay a fine
    • Musk would not have to admit guilt or deny culpability
    • Barred Musk as being the chairman for two years
    • Require Tesla to find two new independent directors

    However, Musk refused this deal "because he felt that by settling he would not be truthful to himself, and he wouldn't have been able to live with the idea that he agreed to accept a settlement and any blemish associated with that, the sources said." 

    This move puts Tesla and Musk in a very difficult spot. The company's stock fell 13.9 percent on Friday - the worst since November 2013. There are also questions as to whether or not Elon Musk will stay on as CEO or if this mess will force him to leave. 

    Choosing to fight the SEC means it could take years for an outcome to be reached according to Toni Sacconaghi, an analyst with Bernstein Research.

    "In the absence of a settlement, the mere possibility that Musk could be removed as CEO (or entirely from Telsa) is likely to cast an overhang on the stock, and make it extremely difficult for the company to raise capital (either private or public)," Sacconaghi said.

    What will be Tesla's defense to the SEC's charge? The Wall Street Journal learned from a source that Musk believed "he had a verbal agreement in place with Saudi Arabia’s sovereign-wealth fund to help finance a plan to take the auto maker private." Musk believes that the SEC isn't "taking into account that Middle Eastern businesses routinely operate using verbal agreements in principle."

    Source: CNBC, Wall Street Journal (Subscription Required)

    User Feedback

    Recommended Comments

    Idiot, IDiot, IDIot, IDIOt, IDIOT

    This guy is so full of himself and another Narcissist that he truly believes his own lie that he had a verbal agreement with SASWF. What a moron and even more of a reason to now remove him as CEO / Chairman and move the company forward with some sound business leadership.

    • Like 1
    Link to comment
    Share on other sites

    That is the problem with deeply arrogant men (especially).  Only a stint in a correctional facility will actually force some humility down his throat.  Yes he should be ousted from Tesla, just for being stupid and excessively arrogant and self-important.

    • Like 1
    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Support Real Automotive Journalism

    Cheers and Gears Logo

    Since 2001, Cheers & Gears has delivered real content and honest opinions — not emotionless AI output or manufacturer-filtered fluff.

    If you value independent voices and authentic reviews, consider subscribing. Plans start at just $2.25/month, and paid members enjoy an ad-light experience.*

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • It's amazing how a leather wrapped steering wheel changes the experience at the wheel for the better (it seems to make for an almost different car from the model with a urethane steering wheel).
    • Another thing to think on is the evidence bullet proof? Sadly, the same type of people who have said an eye for an eye, death penalty if you took a life have convicted others with hate in their heart only to have science prove the convicted innocent.  In this regards I wish all guns had palm / finger tip readers to confirm who last fired the gun. While others might say the death penalty is cruel, how is it when the person if proved beyond a reasonable doubt took a life? What about serial killers who are sitting for life, a burden on society in jail because folks feel there should be no death penalty and yet they took multiple lives themselves. Would it not be better for society if that person was no longer around, a burden on the tax payers? Many good questions to be asked. Lets take this a step further, auto makers who due to a focus on profits take shortcuts on safety of an auto, who should be held accountable for the deaths related to their products and how do you hold them accountable? An example of profit before safety, FORD PINTO Details of the Pinto's flawed fuel system: Location and construction: The sheet-metal gas tank was placed behind the rear axle, a design common at the time, but the Pinto's tank was made with exceptionally thin walls. It was held in place by two metal straps. Vulnerable parts: During rear-end impacts, bolts protruding from the differential housing could puncture the thin-walled tank. Additionally, the fuel-filler neck could tear away from the tank itself. Internal cost analysis: Internal Ford documents revealed that engineers were aware of the risks in pre-production crash tests and considered inexpensive fixes, including adding a rubber bladder to the tank. Alternative designs rejected: Engineers considered safer alternative designs, such as placing the tank above the axle (a design used on the Ford Capri), but this was rejected due to cost and styling constraints. Final design choice: Executives opted not to make these changes after a cost-benefit analysis concluded it would be cheaper to pay out potential lawsuits and settlements than to implement the repairs.  So who do you hold accountable for the deaths?
  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search