The SEC has sent subpoenas to Tesla regarding its privatization plans and Musk’s statement to determine whether the billionaire inventor intentionally misled investors.
Tesla, in response, has also hired two law firms, Paul, Weiss, Rifkin, Wharton & Garrison to help deal with the SEC, and Latham & Watkins to advise on privatization.
Last week, Musk shocked investors after tweeting that he could take the company private at $420 per share, the stock soared on the news before being halted by the Nasdaq.
A former SEC commissioner told FOX Business last week if Musk’s funding disclosure was not accurate, which appears to be the case a week later, it would create a new round of legal issues for Musk.
Cornell Law Professor Robert Hockett thinks Elon Musk’s tweet, about considering taking Tesla private, is legal, but may still spark an SEC inquiry.
1. Elon Musk did not trade on the announcement and did not tell anyone else to trade the announcement
2. Elon Musk and Tesla did announce in 2013 that they would use twitter to make announcements
3. Tesla did release the information in an official public announcement. There was a lag.
4. If there is anything inaccurate in the tweet.
Elon is safe on points 1 and 2.
Items 3 and 4 are causes for lawsuits.
Brian Wang is a prolific business-oriented writer of emerging and disruptive technologies. He is known for insightful articles that combine business and technical analysis that catches the attention of the general public and is also useful for those in the industries. He is the sole author and writer of
nextbigfuture.com, the top online science blog. He is also involved in angel investing and raising funds for breakthrough technology startup companies.
He gave the recent keynote presentation at Monte Jade event with a talk entitled the Future for You. He gave an annual update on molecular nanotechnology at Singularity University on nanotechnology, gave a TEDX talk on energy, and advises USC ASTE 527 (advanced space projects program). He has been interviewed for radio, professional organizations. podcasts and corporate events. He was recently interviewed by the radio program Steel on Steel on satellites and high altitude balloons that will track all movement in many parts of the USA.
He fundraises for various high impact technology companies and has worked in computer technology, insurance, healthcare and with corporate finance.
He has substantial familiarity with a broad range of breakthrough technologies like age reversal and antiaging, quantum computers, artificial intelligence, ocean tech, agtech, nuclear fission, advanced nuclear fission, space propulsion, satellites, imaging, molecular nanotechnology, biotechnology, medicine, blockchain, crypto and many other areas.
