Situs Slot Gacor

Elon Musk proves once again that rules, norms do not apply to him

Elon Musk has once again proved that he wants to do things his own way, and announced on Friday that his contract of 44 billion dollars to buy Twitter is pending. He shared this news in a tweet instead of in a formal submission to the Securities and Exchange Commission. The drama surrounding the agreement has continued to unfold in a series of tweets between Musk and the company.
Because the SEC ruled back in 2013 that the use of Twitter and other social media platforms is an acceptable way for public companies to disclose important information, this may be one of the legal ways he has disregarded the conventions.

However, many other actions of Musk over the years have broken actual rules, not just fragile norms, but none of it has slowed him down or changed his behavior.

The financial penalties that regulators or business partners can put in place mean little to someone as wealthy as Musk. He goes on to tweet evidence that ordinary rules do not apply to the ultra-rich if they choose to ignore them.

One example: Musk recently bought almost 10% of Twitter’s shares – without making the statutory timely announcement.

An investor who buys 5% or more of a company’s shares has 10 days to announce the purchases, so that other investors can be aware of what is affecting the share prices.

Musk waited 21 days to reveal, by which time he had completed the purchase of 9.6% of Twitter’s shares. The news of the acquisition sent Twitter shares soaring even before he announced his bid to buy the platform and take it privately.

Had Musk made the necessary timely submission, it would probably have cost him much more to collect the 15 million shares he bought after the 10-day deadline had come and gone.

The delayed revelation saved Musk $ 143 million by keeping the stock price lower than it could have been when he continued to buy shares, estimates Daniel Taylor, an accounting professor at the University of Pennsylvania.

The Wall Street Journal reported last week that the SEC is investigating Musk’s late reporting on his Twitter stake.

“I think it could be laziness or the belief that rules do not apply,” Taylor said. “But if you look at when the SEC enforces late filing, it’s relatively rare. From a cost-benefit basis, it makes sense not to file. Even if the cost of reporting late is a $ 100,000 fine or a fine. of several million dollars., why would he not [delay filing]? “

Musk’s previous major battle with the SEC back in 2018, when he tweeted that he had “secured funding” to take Telsa private, send shares higher, only encouraged the billionaire.
Musk eventually paid a $ 20 million fine and relinquished his position as chairman of Tesla, even though he retained the title of CEO, which the SEC had threatened to deprive him of as well. He must also have tweets with material information about Tesla approved by others in the company, but it is not clear how closely he has followed this requirement in the last four years.

Musk is still brooding over the settlement he signed with the SEC, claiming that he only did so because the banks could otherwise have cut Tesla’s funding and forced the carmaker to go bankrupt. But Taylor said the action from the SEC was little more than a blow to the wrist.

“They had the ability to send a strong signal and chose not to,” Taylor said.

Other rules Musk ignores

The rules on disclosure of ownership interests are only the latest in a long series of rules that Musk has failed – with little or no consequence.

Traditional car manufacturers issue recalls when they discover a defect in the design or construction of a car. That’s why the National Highway Safety Administration, the federal regulator, has named the Office that looks at consumer complaints and accident data to the Office of Defects Investigation.

But Tesla has been ordered to recall to build its cars exactly as planned. Musk has complied, but has also attacked safety regulators to demand that he make the vehicles less “fun”. And Tesla has not had any significant costs for its actions.
Tesla features that led to recalls include front seat passengers – and possibly drivers – playing video games on the touchscreen in the middle of the dashboard while the car is in motion, allowing cars to roll through stop signs when in self-driving mode. .
Musk has also fought with the Federal Aviation Administration over testing SpaceX rockets without the necessary permission. In 2020, for example, the company conducted a short test flight of its upcoming Mars rocket, called Starship, without providing the FAA with proper documentation or assessments of the risk to “public health and safety,” according to the agency.

Even before the test flight took off, the FAA had rejected a safety waiver requested by SpaceX. But the company went on anyway.

An FAA investigation followed, but SpaceX eventually walked away with little more than an order for “corrective action.”

During the early days of the pandemic, Musk reopened his Tesla factory in California, which had been closed due to orders to stay at home he attacked as “fascist”.
The county health department, which had ordered the closure of the company to stem the spread of Covid-19, eventually agreed to his reopening plans.

– CNN Business’ Jackie Wattles contributed to this report

Source link

Back to top button