Did the SEC buckle over Elon Musk?
Interested to hear your thoughts on the decision by SEC to fine Elon Musk $20m and that he only has to resign from being a chair.
I think what he did is completely illegal, immoral and wrong. I actually like that he wants to progress science and develop technology which will improve human development. However, I think the SEC buckled, at a minimum he should have been banned from being a CEO and I personally think that criminal charges should have been considered. Think about how many other market manipulators have gone to jail. Ultimately, I suppose the hedge funds don't care as long as he compensates them in their legal cases.
I would be interested to see what everyone's thoughts are; am I just being dramatic?
No, the SEC did not buckle over this issue. If the fine and Elon resigning as chairman were the only penalties with no prospect of further SEC/DOJ enforcement actions then I would tend to agree. But thats not the case here. This was a narrowly tailored remedy that included Tesla bringing on two independent board members, hiring a securities lawyer, and Tesla putting into place measures to ensure communications adhere to the laws. Also Elon's communications are now under supervision and material messages need to be pre-approved. These appear to be appropriate steps to curtailing the biggest violations at Tesla. The SEC's directives include protecting public investors -- including Teslas investors. Nuking Tesla or Elon would be contrary to this goal.
Also, there are ongoing parallel SEC/DOJ investigations. Elizabeth Holmes was indicated some time after her settlement with SEC.
The SEC actually move very swiftly on this issue, with the lawsuit coming just two months after "funding secured". Of course the fact that Tesla was already under formal investigation by the SEC helped (what does this tell you about Tesla?).
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