Musk promised the SEC not to talk: Tesla CEO Musk can no longer publicly talk about the financial and business aspects of the company on Twitter.
At least in theory.
Reuters and Bloomberg reported that Musk had reached an agreement with the SEC in a court document filed this Friday in the United States local time, agreeing that tweets related to the company’s operating conditions were first reviewed by legal counsel and then released.
The new agreement disclosed in a document in the Federal Court of Manhattan lists in more detail what kind of statement must be reviewed.
These statements include Tesla’s financial position, proposed or potential transactions, production figures, performance forecasts, financing or loan arrangements, and Musk’s own transactions in corporate securities.
The company’s board of directors can also seek pre-approval on other issues that Musk may discuss on the grounds of protecting the interests of shareholders.
A few hours after the relevant documents were disclosed, Musk published a tweet admitting that he had said something stupid and said: “it is totally my fault.”
Musk had a positive confrontation with the American Securities Exchange a few months ago.
At the time, he announced his consideration of privatization of Tesla on his personal Twitter account and announced the source of funding.
The deal, which proved to be a farce, helped Tesla’s stock price break away from the bottom range for several months, but with the disappointment and its poor financial situation, the stock price fell back.
The SEC sued Mask for allegedly defrauding investors. Although Musk promised to shut his mouth and was fined and resigned as chairman of Tesla, in February of this year, he provided Tesla’s expected production figures on social networks.
The US Securities and Exchange Commission also asked the Manhattan court to rule that Musk defied the court decision. The legal instrument submitted by Musk this week is a compromise for the incident.
But now Tesla and Musk have more tricky things to deal with. In the first three months of this year, Tesla delivered a total of 63,000 electric vehicles, achieving a revenue of $4.54 billion.
Both figures have fallen sharply from the third and fourth quarters of last year. At the same time, the gross profit margin of the car fell by 4 percentage points, and the operating profit returned to a negative number (-$521 million).
Dav Ives, a technology analyst at Wedbush Securities, a financial management and investment firm, said in a briefing to the Curiosity Daily (www.qdaily.com) that Wall Street is always based on the prospect of electric vehicle transformation and Model 3 stable mass production.
Pull long-term valuation. But Tesla did not adapt to the ever-changing electric vehicle market (especially in the US), without well-designed marketing and distribution logistics to manage this difficult and complex process for customers, employees and investors, the management and the board did not take A radically cost-cutting action. Dav Ives downgraded Tesla’s stock rating from neutral to neutral.
More radical investors believe that Tesla is a good short-selling target, and they profit by betting on Tesla’s share price. For example, Gabriel Hoffman, founder of Accipiter Capital Management, told Yahoo Finance that Musk is a “living magician”, blatant propaganda that can’t be done, and the semi truck that jumped the ticket is one million.
A self-driving taxi is also available. The founder of the well-known short-selling agency, Muddy Waters, told CNBC earlier that Tesla’s production capacity might not be able to compete with other competitors.
The last time Musk encountered such a large-scale questioning was before and after the financial crisis. Both of his companies are facing bankruptcy. He eventually got a loan of about US$500 million from the US Department of Energy and successfully listed the operation of Tesla, and gradually came to this day.