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The beginning of the end for pothead liar Elon Musk and Tesla - the SEC Swoops

By Tom Winnifrith | Friday 28 September 2018



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


The Securities and Exchange Commission, the SEC, has announced that it is to sue Elon Musk and Tesla (TSLA) for fraud and wishes to bar the pothead liar Musk from running a public company The news saw the shares tank by $37 to $270 in after hours trading but this is just the beginning of the end for the porky pie merchant and his out of cash and drowning in debt company.

In August Musk tweeted that he was considering taking Tesla private at $420 a share and had “funding secured” prompting the stock to soar.  He did not have funding secured. That was a lie. The SEC adds that while Musk arrived at a take-out figure of $419 he rounded that up to $420 as that is the slang for pot and Musk thought the joke would impress his girlfriend.

The SEC said: “This statement was false and misleading. Over the next three hours, Musk made a series of additional materially false and misleading statements via Twitter.”

One man who knows about the SEC is Crazy Eddie fraudster turned fraudbuster Sam Antar who reacted to the news by saying that Musk was a fool not to cut a compromise deal – which he was offered – with the SEC but that his legal problems were only just beginning. Sam tweeted:

Dumb move by Musk to walk away from an early settlement with the SEC and cut his losses. Now, the SEC will double-down and slam him. $TSLA

and

Memo to @elonmusk: Idiot! No ‘good’ fraudster gets nailed because of a single tweet.

And

Memo to @elonmusk: The SEC has just breached your defensive perimeter. The SEC charges today is NOT the end game. It’s only the beginning. Parallel civil and criminal probes are a bitch

As for Tesla the next issue are its Q3 numbers out very shortly. Must had stated it would be cashflow positive. Unless there is monumental book cooking and I’m not sure that even Sam Antar could cook these books well enough to create that illusion, that target will be missed. Tesla is rapidly running out of cash and in this position who on earth is going to back a rescue refinancing?

Musk may be a pot head and a liar but it is only his charisma that has kept the plates spinning and secured funding to date. Without him at the helm the company is surely toast.

Tesla remains a short with clear potential to zero.



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