Elon Musk Is His Own Worst Enemy
Elon Musk is a believer. In space travel, in clean energy, in massive engineering solutions to human problems. So the naysayers who don’t believe in the future of Tesla—which has struggled with production, labor, and debt issues—have always bugged him. On August 7, he announced a possible solution: Withdrawing from the public market and the scrutiny it brings. “Am considering taking Tesla private at $420. Funding secured,” he tweeted. The post confused analysts, reporters, investors, and Musk aficionados alike. $420 represented a substantial premium over the stock’s price that day—not to mention a bizarre connection with marijuana culture. Was he serious, or was it a joke?
It wasn’t a joke. Musk affirmed his plans in subsequent tweets and blog posts, suggesting that the deal was done pending a board vote and that individual investors would be able to retain their ownership. But according to the Securities and Exchange Commission, no legitimate plan ever existed. After an investigation into the matter, the SEC has charged Musk with securities fraud for misleading investors about the leveraged buyout.
The SEC filing contends that almost everything in the tweets was false or misleading. Musk had had
