RIP Philo

Musk's illegal stock manipulation move

Tesla stock is highly shorted and volatile.

Musk announced he's thinking of selling the company to a phantom private investor (who doesn't exist) for $420 and all stockholders will receive a $420/share buyout.

Obviously this has the effect of moving Tesla stock UP towards $420.

If he had a deal worked out and signed, then he could legally announce such a deal.

However, he doesn't have such a deal worked out, or signed, and the "private party" doesn't exist.

So it's wanton stock manipulation, which is totally illegal and he's going to get completely ass raped by the SEC for this, it's criminal. He'll probably go to jail.
Permalink RC 
August 8th, 2018 6:43am
Apparently there's some sort of rule that you can't announce a private leveraged buyout until after you've filed a 8-K with the SEC and all investors in the stock.

https://www.investopedia.com/terms/1/8-k.asp

Since Musk announced an unexpected LBO offer with no details and no 8-K filing, Tesla stock was halted from trading. Stockholders shouldn't be able to buy or sell it until Musk files the 8-K. However, the halt was lifted and the stock resumed trading for unclear reasons and immediately went up 12%.

He had a maximum of 4 days to issue following the phantom buyout deal being finalized to issue the 8-K.

Supposedly stockholders are considering lawsuits if the deal isn't proven to exist with a real buyer.
Permalink RC 
August 8th, 2018 6:55am
>> Supposedly stockholders are considering lawsuits if the deal isn't proven to exist with a real buyer.b

Why wait

Failure to file was illegal if the deal exists

Maybe you got it backwards?
Permalink Shelley 
August 8th, 2018 6:57am
It would make sense for a cash-rich company to buy Tesla.

So...

  Not a car company then

Maybe...

  Apple?
Permalink Nazmin Akthar 
August 8th, 2018 7:07am
Shorters who shorted Tesla have lost 12 billions and counting. One guy I particular hate: ((David Einhorn)) of Greenlight capital.
Permalink DrPepper 
August 8th, 2018 7:18am
Love him or hate him

  Musk is a cool guy
Permalink Go Musk 
August 8th, 2018 7:26am
Was he high? Go private at $420?

He shows some poor judgement, tweeting this out in an obvious attempt at squeezing short-sellers. He better be able to follow through or else this is another in a series of misleading statements.
Permalink NPR 
August 8th, 2018 7:40am

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