CNBC's Jim Cramer on Wednesday he said that a federal judge should put a "special master" on Tesla's board to do CEO Elon Musk in accordance with a court agreement between him and the Securities and Exchange Commission.
Musk has been under pressure for his practice to convey important business information about Tesla through Twitter.
" At this stage, I think a special master would be a profit for shareholders. Everything else a loss, "The Mad Money" host said. "However, it is not Judge Nathan's job to protect Tesla's warehouse, it is her job to protect the judicial system."
As options, Cramer suggested that US District Judge Alison Nathan in the southern district of New York also remove the co-founder as chief or send him to jail to break the deal.
"She can remove Musk from the CEO's job ̵[ads1]1; he can't mislead investors about Tesla if he's no longer talking to Tesla," Cramer said. "She could criminalize crime and actually punish him for jail. It's a difficult conversation. But to be honest, Musk speaks practically about throwing the book on him. "
Musk has not tried to get any Tesla-related tweets to his 24 million plus followers approved, including one in February that said the electric The vehicle manufacturer would produce about 500,000 cars in 2019, the SEC said. Musk later directed the tweet and said that there should be about 400,000 deliveries this year.
At the end of February, Musk said in a tweet that "there is something that violates the SEC." Attorneys at the CEO have accused the SEC of overreaching and violating Musk's First Amendment rights to try to keep him in contempt of court.
Cramer called it "the most absurd argument I have ever heard" and said Musk could be "in real trouble here."
"If the SEC's claims are true, then he basically bounces on the face of the justice system … [and Judge Nathan] can not just let him violate a court order and get away with it. The whole system would race, for the sake of heaven. "
Judge Nathan is" harvested "since the veneer Musk $ 20 million and cannot rely on Tesla's regime to empty Musk, Cramer said. The case comes from an August tweet by Musk
Shares in Tesla traded up / down ___ percent in Tuesday sessions. The share is down 18 per cent this year and about 12 per cent in the past year.
"Unless you enjoy the idea of Tesla without Musk to the helm, I don't know why you want to buy [the] stock here," said the host.
"I think the guy is a genius … and a great success in a small-growth business, but I just don't think he can wipe it out."
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