SAN FRANCISCO (AP) -- The very attributes that have fueled a mania around Elon Musk — his vision, brash personality and willingness to take risks — could prove to be his downfall.
(IS MUSK A "GENIUS"? HE HAS INVENTED NOTHING AND TAKES CREDIT FOR THE WORK OF OTHERS)
But extracting Musk from the company he has become synonymous with could devastate Tesla.
The Securities and Exchange Commission filed a complaint against Musk on Thursday, alleging he falsely claimed in an Aug. 7 tweet that he had secured financing to buy out Tesla and take it private at $420 per share, a substantial premium over the stock price at the time.
The SEC is asking a federal court in New York to bar Musk from serving as an officer or director of any public company. The case is not expected to go to trial until early next year.
The fraud case comes amid a squall of disquieting tweets and other troubling disclosures that have raised questions about whether Musk should remain at the helm of Tesla, a company valued at $46 billion.
Musk has "gone from looking like the visionary genius to looking like the out-of-control guy who probably is on the borderline of a breakdown," said Erik Gordon, a professor at the University of Michigan Ross School of Business.
Even before the SEC went after his job, Musk had raised hackles by ridiculing stock market analysts for posing fairly standard questions about Tesla's shaky finances, and then called a diver who helped rescue 12 boys on a Thai soccer team from a flooded cave a pedophile , triggering a libel lawsuit against himself.
The challenges already facing Tesla might become even more daunting without Musk as CEO because its fortunes are inextricably tied to those of its leader.
Musk's charisma and accomplishments as a disrupter of several industries are worth $130 per share — or about $22 billion — to Tesla, Barclays analyst Brian Johnson wrote in a note. He called it the "Musk premium."
Given that Tesla has mostly lost money throughout its history and has had trouble meeting its own production targets while burning through cash, the company's stock could be in danger of cratering without Musk's aura.
That, in turn, could make it more difficult to raise more money to stay alive, particularly in the coming months, with $1.3 billion in debt payments coming due by early next year. It could also scare off consumers who are being asked for large deposits when they order the futuristic electric cars. And it could make parts suppliers skittish about doing business with the company.
Investors are already shuddering over what a Musk-less future might bode for Tesla.
The company's stock plunged nearly $43 on Friday, or almost 14 percent, to $264.77, erasing $7 billion in shareholder wealth. Barclay's Johnson is predicting Tesla's stock will fall to $210.
That's a 44 percent decline from where the shares ended just hours after Musk tweeted over the summer that he had secured funding for a buyout.
The SEC alleges Musk wasn't even close to locking up the money and based the price at a slang reference to marijuana — 420 — to amuse his girlfriend. Since that tweet, Musk has been seen on camera apparently smoking marijuana in California, where the drug is legal.
In an apparent effort to do that, the SEC offered Musk a settlement that would have allowed him to pay a small fine and stay on as CEO if he agreed to certain conditions, including restrictions on when he could release information publicly, according to a person knowledgeable about talks between the company and regulators.
The person, who asked not to be identified because the negotiations were private, said Friday that Musk rejected the offer because he didn't want a blemish on his record.
Musk needs to set aside his hubris if he wants to do what is best for Tesla, a company he has spent 15 years building, said Gene Munster, a former stock market analyst who is now managing partner of investment fund Loup Ventures.
"His ego is so clearly tied to the company, so what would be best for Tesla's investors would be for him to realize the company is more important than his ego," Munster said.
For its part, Tesla's board is standing behind Musk, declaring in a statement that it is "fully confident in Elon, his integrity, and his leadership of the company."
Tesla might be able to thrive without Musk if it could replace him with a more experienced automotive or technology veteran who has been at the helm of a profitable company, said Karl Brauer, executive publisher of Kelley Blue Book.
But that might depend on Musk — who owns a roughly 20 percent stake in Tesla — being willing to accept a less visible role at the company. "That role could be completely impossible for Elon to play," Brauer said.
Krisher reported from Detroit. AP Business Writers Cathy Bussewitz and Alexandra Olson in New York contributed to this story.
THE CORRUPTION, FRAUD AND BRIBERY CHARGES AGAINST ELON MUSK AND TESLA MOTORS
The following, culled from a variety of news articles, lawsuits and investigative reports, demonstrates the profound number of illicit actions charged against Elon Musk and his Silicon Valley cartel insiders. While any given, unbiased, expose on Musk covers some of these issues, it is important to examine the width and breadth of Musk's culture of corruption. Expert witnesses, former employees and investigators are able to fully detail and confirm, with extended evidence, the following charges, in court, or Congressional public hearings:A.) ELON MUSK AND TESLA FACE CRIMINAL FRAUD CHARGES BY FEDS! MUSK FINALLY EXPOSED!
D.) Elon Musk's Incredible Smoke And Mirrors Dance. Elon Musk's untraceable money laundering and political bribery scam has now been exposed. It is called an "Invisible Bridge". It is the way that covert funds move through a secret conduit of close associates and family members. Elon Musk is at the head of the conduit and his mother, brother and associates Tim Draper, Steve Jurvetson, and George Soros round out the other tentacles. With operational links through Wells Fargo Bank, Silicon Valley Bank and Goldman Sachs, the scheme is perfected corruption. The "bridge" uses a combination of fake tax evasion charities and business assets, passes through Senator's pockets and is never visible to the FBI, the FEC and the SEC unless they have very good agents assigned to the matter.
E.) NTSB, DOJ, SEC and FEC have been blocked from action by DNC lobbyists.
F.) The overt and arrogant Musk misdeeds have now become "obvious and RICO-violating..."G.) He is protected by Senators Reid, Harris, Pelosi and Feinstein. They are beneficiaries of the scam. Musk’s self promoting, narcissistic, multi-billion dollar, self-aggrandizing PR hype. Elon Musk exists because he bribed DNC politicians including Obama, Clinton and Senators Feinstein, Reid, Boxer, Harris, Spier and Pelosi to give him free taxpayer cash and government resources from the Department of Energy and the California political tax pool. This is proven when you follow-the-money and the insider trading, stock ownership and crony payola kick-backs.
H.) He is protected by the Clinton and Obama organizations along with most of the DNC. He finances these politicians via this scheme.
I.) The U.S. Dept of Energy (DOE) has been covering-up organized crime activities at DOE in which DOE funds are being used as a slush-fund to pay off DNC campaign financiers and to pay for Fusion-GPS attacks on Silicon Valley business competitors.
J.) DNC campaign financiers and DOE staff share
stock market holdings with each other under
family trusts, shell corporations and layered
Goldman Sachs accounts. The deal was: Obama
funds Tesla, Musk conduits campaign funds to
Obama, top Obama staff profit off of insider
K.) Elon Musk is a criminal, a mobster, an asshole, a balding fake-hair wearing, plastic surgery-addicted, bi-sexual douchebag, woman-abusing, sex addicted, tax evader.
L.) Musk exploits poor people and child slaves
in the Congo and Afghanistan to mine his lithium
and Cobalt. Look up this phrase on the top
search engines: “child labor electric car
K.) Musk spends billions per year to hire Russian trolls, fake blogger fan-boys and buy fake news self-glory look-at-me articles about himself. Musk thinks he is the 'Jesus' of Silicon Valley and he will do anything to make the public think so. Musk is insecure because his father was abusive and his “trophy wife” Mother is overbearing so he developed sociopath-like mental issues.
M.) Musk has been professionally diagnosed as a 'psychotic narcissist.
N.) Musk has publicly stated on an investor
call that he uses drugs and alcohol to get
through the night. We have the tapes.
O.) Musk relies on Google and the DNC Main Stream News (MSN) to hide bad news about him. Fake News manipulator Google is run by Larry Page. Larry is Musk's investor and bromance buddy. They share an apartment.
P.) Musk uses shell companies and trust funds
to self-deal, evade the law and hide his bribes
and stock market insider trading. His brother
ran Solar City and is now under federal
investigation for securities fraud.
Q.) A huge number of Tesla drivers, per capita, have been killed; pedestrians and oncoming drivers have also been killed, and Musk covers it up.
R.) The DNC and the MSM refuse to allow any articles about Musk's crimes to be printed because they benefit from Musk's crimes.
S.) VC’s Tim Draper and Steve Jurvetson are so fanatical about not being embarrassed from a Tesla bankruptcy that they will pump the TSLA stock and threaten anybody who might disclose the Musk misdeeds.
T.) Peter Thiel, a Musk ‘boyfriend” also protects Musk. Musk, and his cronies, use Palantir, Google and related software to scan the entire internet every few minutes for any occurrence of the words: “Musk”, “Tesla” or “Tesla Fire”. They send trolls and fake bloggers (Many of them Russian) to put pro-Musk comments on the comments section of any blogs or articles discussing those topics and try to flood out the truth about Musk. In EVERY blog that you read that mentions 'Musk', at least 1/3 of the comments have been placed their by Musk's paid shills.
U.) There are no “Tesla Fan Boys”. All of the fanatic Tesla comments on the internet are Musk’s, Thiel’s, Jurvetson’s and Draper’s fake fanboy trolls. Musk, himself, stays up late at night pretending to be a ‘Tesla Fan Boy’on blogs.
V.) Main Stream DNC-biased News organizations
who refuse to cover the story reveal themselves
as shills for Musk.
W.) The Silicon Valley Mafia promotes Musk as a "Tech God" leader but, in reality Musk is the same kind of "Leader" as Charles Manson, Jim Jones, David Koresh, Swami Rajneesh and Al Capone.
X.) His own people have sued him for fraud and
lies once they realized that Musk-ism and
Scientology had so much in common.
Y.) The 'Silicon Valley Mafia; cartel of frat boy sociopath venture capitalists like Steve Jurvetson, Tim Draper, Eric Schmidt, et al; threaten those who do not support the cult of Tesla or their political candidates.
Z.) Musk holds the Silicon Valley record for getting sued for fraud by his investors, wives, former partners, employees, suppliers and co-founders.
A1.) Elon Musk has gone out of his way to hire
hundreds of ex-CIA and In-Q-Tel staff and assign
them to "dirty tricks teams" to attack his
competitors and elected officials who Musk
A2.) Musk and his culture are being sued for abuse to women and blacks and the Unions hate him for lying to them.
reveals even more Musk lies.
A4.) Musk never founded his companies. He took Tesla away from the founder: Marty, in a hostile take-over!
A5.) Musk's "Starlink" satellites are domestic spy and political manipulation tools - never get your internet from anything SpaceX has launched. SpaceX is entirely a domestic spy operation.
A6.) Musk's "Mars" scheme is just a PR
A7.) The same kind of EMF radiation proven to cause cancer from cell phones exists in massive amounts in a Tesla.
A8.) Musk can't fix a car or build a rocket and has almost no mechanical skills.
A9.) If you pull a report of every VIN# of every Tesla ever built and cross reference that with insurance, repair and lawsuit records you will find that the "per volume" fire, crash, death and defect rate is THE WORST of any car maker in history! Musk's lobbyists have bribed DOT and NHTSA to stall safety inspections.
A10.) NO COMPLETE UNCOMPROMISING SAFETY REPORT ON TESLA CARS HAS EVER BEEN PUBLISHED but we have a copy of a hushed up report that would put Tesla out of business.
A11.) Musk's 'Autopilot' system is a scam to
get government cash BUT IT NEVER WORKS. The
Tesla 'Autopilot' has crashed into police cars,
pedestrians, swamps and driven owners over
A12.) Musk is a lying con artist and partners with Goldman Sachs to rig the stock market. Sachs has a dedicated team of 18 men who rig stocks and valuation bumps for Musk.
A13.) The "Silk Road" Cocaine and Murder-For-Hire website was created at Musk's SpaceX
A14.) Musk's In-Q-Tel staff ran two transport
planes filled with drugs; listed as "Cocaine 1"
on FAA records.
A15.) Senators Dianne Feinstein, Harry Reid, Nancy Pelosi, Kamala Harris and their associates own the stock in Tesla Motors and/or it's suppliers and mining companies. That is why they criminally help cover-up investigations of Tesla!
A16.) All of this was reported, in writing, to James Comey, Patricia Rich and David Johnson at the FBI.
A17.) Tesla and Solyndra sit on the same land
and share staff, contracts and lobbying.
California politicians own parts of both
A18.) Musk took over Tesla Motors in a hostile take-over in order to exploit lithium, cobalt and other mining corruption deals for his business partners.
A19.) The ‘lithium’ in Musk’s horrifically miss-engineered lithium ion batteries cause wars in the Congo over mining corruption.
A20.) Afghanistan and Bolivian mobsters benefit from the corrupt mining deals involved with mining lithium and cobalt for Elon Musk's batteries.
A21.) Elon Musk's Lithium ion batteries are insider trading-owned by ex-CIA boss Woolsey and DOE Boss Chu and they engaged in extreme conflict-of-interest to help Musk.
A22.) Elon Musk's Lithium ion batteries excrete chemicals that mutate fetuses when they burn.
A23.) Elon Musk's Lithium ion batteries destroy your brain, lungs and nervous system when they burn.
A24.) Elon Musk's Lithium ion batteries kill the factory workers who make them.
A25.) Elon Musk's Lithium ion batteries cause Panasonic to be one of the most corrupt companies in the world.
A26.) Elon Musk's Lithium ion batteries poison the Earth when disposed of.
A27.) Elon Musk's Lithium ion batteries can't be extinguished by firemen because water makes them explode even more and then explode again hours later.
A28.) Elon Musk's Lithium ion batteries have chemical dendrites and deposition massing issues (revealed by X-Ray analysis) which makes them more and more likely to explode as they age.
A29.) Elon Musk's Lithium ion batteries poison firemen when they burn.
A30.) Elon Musk's Lithium ion batteries are based on criminally corrupt mining schemes like URANIUM ONE.
A31.) Elon Musk's Lithium ion batteries have over 61 toxic chemicals in them.
A32.) Elon Musk's Lithium ion batteries come from an industry that spends billions on internet shills and trolls that they hire to nay say all other forms of energy
A33.) Elon Musk's Lithium ion batteries are
insider-trading owned by corrupt U.S. Senators
who are running a SAFETY COVER-UP about their
A34.) Apple products with lithium ion batteries have been exploding and setting people on fire.
A35.) Over time the chemical dendrites, or
deposits, inside each battery grow worse and
increase the chances of explosion as they age -
LITHIUM ION BATTERIES BECOME MORE AND MORE
LIKELY TO EXPLODE AS TIME GOES ON AND AS THEY
AGE. This is not a theory. This is a scientific
fact. That is why you hear about more and more
lithium batteries catching fire and blowing up.
Additionally, scientists also speculate that the
increasing presence of low energy nuclear
background energy and wifi energy in the
environment is making lithium ion batteries
explode more often lately. This is upheld by the
increasing number of FAA reports about
commercial airline cabins suddenly “filling up
with toxic smoke” as some lithium ion battery
explodes in someones overhead luggage. As
commercial jets go higher they lose the
protection of the atmosphere and are subjected
to more gamma (and other) radiation from
overhead. This makes the already unstable
lithium ion batteries on board blow up.
A36.) Tesla owner's had had more DUI's, abuse filings in divorce proceedings and crashes than any other car maker PER VOLUME. This makes Tesla the #1 car for douche bags and scummy people.
A37.) Tesla's own federal patent filing records confirm that Tesla batteries are as dangerous as this document reports.
A38.) "Bad Guys" have figured out how to make Elon Musk's Lithium ion batteries explode remotely in devices by making the device electronics cause the batteries to overload.
A39.) The dangers of Elon Musk's Lithium ion batteries batteries are hidden by CNN and Main Stream News (MSN) because pretty much only the DNC people profit from them and the DNC folks control CNN and the MSN.
A40.) George Soros owns part of Tesla Motors so
that Soros can help conduit DNC cash.
A41.) The Obama Administration promised Silicon Valley oligarchs the market monopoly on lithium ion batteries and the sabotage of fuel cells in exchange for campaign financing and search engine rigging.
A42.) United States Senators that are supposed to protect us from these deadly products own the stock market assets of them so they protect them and stop the FDA, OSHA, DOT & NHTSA from outlawing them.
A43.) There have been thousands of defect
reports filed on Tesla cars.
A44.) Tom Steyer is a notorious DNC financier. His partner, Margaret Sullivan ran, the federal USAID agency, USAID sent all of the DNC campaign financiers in Silicon Valley a federal ‘report’ from USAID that said there was “A TRILLION DOLLARS OF LITHIUM IN AFGHANISTAN” and promised to give those lithium mines, EXCLUSIVELY, to the Silicon Valley venture capitalists if they funded and web search manipulated the election for Obama to take over the White House. We have the documents proving this. In other words, a re-up of the Afghan War was caused by Elon Musk and it killed American soldiers so that Musk could buy more mansions and trophy wives.
A45.) If a Tesla battery gets wet it will explode and cause all of the other batteries to explode in a "cascade of explosions".
A46.) Water makes Tesla batteries explode.
A47.) In an accident, when a Tesla rolls over,
molten metal & plastic can drip on &
burn the occupants alive and seal them in molten
A48.) Alkaline, NiCAD and hundreds of other battery chemistries DO NOT have all of these problems but Lithium Ion batteries get a monopoly because of politician insider trading owner-ships.
A49.) Tesla Motors has caused far more deaths and injuries than the world generally knows about.
A50.) A recent fire on U.S. Highway 101 near Mountain View, CA, burned the driver alive and killed him.
A51.) In Florida two kids died in a Tesla, burned alive, screaming in agony.
A52.) A man died in agony in a Tesla crash in Malibu that set Malibu Canyon on fire.
A53.) A young woman, at the start of life, and her boyfriend were burned alive in their crashed Tesla.
A54.) There are many more deaths and crashes
than you have seen in the Main Stream News (MSN)
The deaths and the cover-ups are endless.
A55.) Senators Dianne Feinstein, Harry Reid, Nancy Pelosi, Kamala Harris and their associates own the stock in Tesla Motors and/or it's suppliers and mining companies and they cover-up and halt investigations and laws designed to save the public.
A56.) Elon Musk's Lithium ion battery partners spend over $1B a year to shill and troll hype about lithium ion batteries and cover-up the dangers.
A57.) Lithium ion EVs are more prone to battery fires.
A58.) Experts say that their lithium-ion batteries can fuel hotter fires that release toxic fumes and are more difficult to put out. Lithium ion fires keep reigniting which explains why it takes so long and requires copious amounts of water or foam (it is an electric fire, after all) to smother the flames.
A59.) Tesla employee Bernard Tse and his team warned Elon Musk about these dangers in 2008 and they got fired and/or warned to "say nothing" by Musk.
A60.) Three top Tesla engineers died in a plane
crash next to Tesla offices in San Carlos after
two of them agreed to become whistle-blowers.
A61.) The DNC bosses, Congress people and federal executives own the stock in lithium, Solar and EV markets and use kickbacks from those markets (Especially via convoluted campaign finance laundering via Elon Musk) to finance the DNC.
A62.) The DNC bosses and Musk use character assassination as their main political tool against any member of the public who speaks out against their felony stock market scams and PizzaGate-like scandals. The Harvey Weinstein reports by Ronan Farrow show that they have teams of hired goons that they pay to destroy people's lives.
A63.) They use Black Cube, Mossad, In-Q-Tel, Stratfor, Gawker Media, Gizmodo Media, Media Matters, David Brock, Sid Blumenthal, NY Times, Google servers, Facebook servers, Podesta Group, Perkins Coie, Covington & Burling and a host of "media assassins".
A65.) Musk buddies: Gawker and Gizmodo Media set-up the attack stories and, in paid partnership with Google, Google kicks their attack links around the globe, in front of 8 Billion people, forever. Google locks the attack articles of its enemies on the front top search results of Google search results forever, on purpose! Google and Musk are partners-in-crime.
A66.) Larry Page steals technology for Google and Musk meets with Larry Page to advise him on which technologies to steal and how to bypass FEC laws.
A67.) Musk has exceeded FEC campaign finance
limits by billions of dollars via “in-kind”
A68.) Had the full scope of these facts been acted on during the Obama Administration, Barack Obama would have become the first modern sitting President to have been arrested in the White House. Barack Obama was fully aware of these schemes, crony payola deals and corruption crimes and discussed the implementation of these crimes, daily, with Rahm Emanuel, David Plouffe, Steven Rattner, Robert Gibbs, John Podesta, David Axelrod, Eric Holder and Jay Carney in the Oval Office.
A69.) THIS corruption involves TRILLIONS of dollars of corrupt mining deals, automotive and energy monopolies!
A70.) THIS is why the federal budget analysis reports are showing TRILLIONS of dollars of 'untraceable' losses from the United States Treasury from 2006 up to today!
A71.) THIS is why a large number of reporters, whistle-blowers and prosecutors suddenly, and mysteriously turned up dead!
A72.) The company that Elon Musk built to usher in the electric-car future might not have enough cash to make it through the calendar year.
A73.) Tesla again fell far short of its own production targets for the mass-market Model 3 sedan
A74.) Another person died in a crash involving its assisted-driving feature.
A75.) Musk entered into a public dispute with federal safety regulators.
A76.) Tesla’s once high-flying stock, buffeted
by a downgrade from credit analysts, has dropped
24 percent from its peak in September.
A77.) No one has raised or spent money the way Elon Musk has; Nor has any other chief executive officer of a public company made a bankruptcy joke on Twitter at a time when so much seemed to be unraveling.
A78.) Tesla is going through money so fast that, without additional financing, there is now a genuine risk that the 15-year-old company could run out of cash in 2018. The company burns through more than $6,500 every minute, according to data compiled by Bloomberg. Free cash flow—the amount of cash a company generates after accounting for capital expenditures—has been negative for five consecutive quarters. That will be a key figure to watch when Tesla reports earnings May 2. Read the full story here: https://www.bloomberg.com/graphics/2018-tesla-burns-cash/
A79.) In years to come, we will all look back and wonder how so many people were taken in by this shyster, who makes Enron look honest.
A80.) One of Tesla’s greatest strengths is its ability to monetize the patience and goodwill of its customers and loyal fans. The company is sitting on a staggering $854 million in customer deposits as of the end of 2017.
A81.) Since Tesla sells its products direct to consumers, without relying on a dealer network, customer deposits are cash payments that essentially serve as interest-free loans—and these loans can stretch on for years. If Tesla were to go bankrupt, those deposit holders would likely be wiped out.
A82.) Tesla is holding customer deposits for two vehicles that aren’t even in production yet: an electric Tesla Semi ($20,000 deposit) and a next-generation Roadster (either $50,000 down or the $250,000 retail price paid up front to reserve a limited edition). Even customers interested in installing an array of solar roof panels or the company’s Powerwall home battery must hand over $1,000 to place an order.
A83.) Tesla doesn’t break out deposit numbers by car, but the vast majority comes from $1,000 reservations for the Model 3. When Musk first introduced the lower-priced sedan in March 2016, fans stood in long lines at Tesla stores. Two years later, the slower-than-expected pace of production means that most of the more than 400,000 reservation holders are still waiting. And new people appear to be joining the queue: As of April, the company reported “net Model 3 reservations remained stable.”
A84.) There’s an additional source of free money from loyal believers: An unknown number of customers have paid up for vehicle features—$3,000 for “Full Self Driving” capability, for example—that Tesla thus far hasn’t figured out or released to anyone.
A85.) Elon Musk cooked the books by emailing interested sales prospects and asked them to put a deposit down before each quarter ended so he could book their tiny deposits as fully transacted $60K+ "sales" before each quarter closed.
A86.) Elon Musk and SpaceX are being sued by multiple employees for "lying about safety standards, safety records" and deadly safety defects.
A87.) THE WORST PART OF THIS LIST
is that there are over 1000 other items that can
be added to it...
TAGS: Silicon Valley Mafia, Afghan, TSLA, Tesla, Tesla Investigation, SEC Investigation, Smedley Butler, Musk, Spacex, Google, Bribe, Political bribes, Lithium ion, lithium ion danger, DOE, Paypal Mafia, AngelGate, Steven Chu, Schmidt, Obama, Solyndra, Crony, Political Insider, Feinstein Coruption, Pelosi Corruption, Cleantech, Political Poisoning, Clinton Deaths, Obama Campaign, DNC Spy, Cobalt Mining Child Labor, In-Q-Tel, Uranium1, Domestic Spying, Kleiner Perkins, Draper Fisher Jurvetson, Vinod Khosla, Tim Draper, George Soros, Fusion GPS, Gawker Media is the DNC, Gizmodo Media is the DNC, Department of Energy Slush Fund, Google Defamation Attacks, DOE Corruption, Election Rigging, Google's Election Manipulations, Silicon Valley Blacklist, Google Sex Scandals, Pelosi, Crony Capitalism, Feinstein, Green Payola, Election Hacking, Eric Schmidt Corruption, CIA Abuse, New America Foundation Corruption,