Ok so this is in reference of Elon’s Tweet Today: “Tesla stock price is too high imo”
This Past Week.
As we know Elon has been very vocal on shelter-in-place orders that have been put in place nationwide tweeting numerous times, this has created two groups, people who are for the shelter-in-place and people who aren’t.
Since the tweeting, people have been believing that Musk is a capitalist and doesn’t care about anyone or the pandemic and only money. They believe that Musk is trying to capitalize on his payday of over $750 million, if Tesla can hold a $100Billion market-cap, this
is was on the verge of happening(2-months away) until now.
So Why Tweet?
This seems to be pretty obvious when you look at it, saying “Tesla stock price is too high imo” will dump the price of the stock, hopefully going below that $100 billion market cap, ending the 4 out of 6 month streak and restarting the tranches. This also can show that maybe Musk is speaking his mind, and isn’t about the money, but his personal views. (Subject to peoples opinions)
This is hard, since we don’t know. Although this tweet could’ve been completely legal, even under the SEC Guidelines. The SEC never said that he couldn’t tweet about Tesla & Stock, it just said that any tweets must go through a committee to first look over the tweet, if approved he was allow to post the tweet without any legal issues. (https://techcrunch.com/2019/04/26/elon-musk-sec-agree-to-guidelines-on-twitter-use/)
U.S. District Judge Alison Nathan, the presiding judge on this matter, must still approve the deal. Nathan had given the SEC and Musk two weeks to work out their differences and come to a resolution.
Musk must seek pre-approval if his tweets include:
any information about the company’s financial condition or guidance, potential or proposed mergers, acquisitions or joint ventures,
production numbers or sales or delivery number (actual, forecasted, or projected),
new or proposed business lines that are unrelated to then-existing business lines (presently includes vehicles, transportation, and sustainable energy products);
projection, forecast, or estimate numbers regarding Tesla’s business that have not been previously published in official company guidance
events regarding the company’s securities (including Musk’s acquisition or disposition of shares)
nonpublic legal or regulatory findings or decisions;
any event requiring the filing of a Form 8-K such as a change in control or a change in the company’s directors; any principal executive officer, president, principal financial officer, principal accounting officer, principal operating officer, or any person performing similar functions