Musk and Tesla targeted by two fraud procedures

Tesla's board might not know where Elon's 'secure' funding is coming from

Tesla's board might not know where Elon's 'secure' funding is coming from

"Ask TSLA to show you the agreement (s) signed by their funding source (s) by 5 pm EST that demonstrates funding is "secured" and 'certain, '" he wrote, using the company's ticker symbol.

August 1, 2018 - Tesla reports its biggest-ever loss but shares rise on Musk's claims of positive cash flow and profit in the second half of 2018, and signs of more consistent Model 3 production. After Musk's tweet, Tesla shares rose, and Isaacs was frantic.

The scribe also reached out to individuals close to 16 tech and financial institutions and they said that they were not aware of any pre-arranged funding for this transactions. Even the SEC is in on the game, requesting that Musk disclose a lot more than "funding secured", a phrase that sent tremors throughout the investing world. Rather, he had Tweeted to decimate the Company's short-sellers who were forced to cover their positions over the succeeding days at artificially inflated prices.

Many in USA financial circles are wondering where he will he get all this money, and have turned skeptical despite the reverence in which they normally hold Musk, who founded the company in 2003 to transform cars into tech marvels. While the entrepreneur owns 20 percent of Tesla, more than $60 billion would be needed to buy the business from public shareholders.

The briefs battle royale began after Einhorn's hedge fund said in a letter he was "happy that his Model S lease ended" and was replacing the auto because of problems with the technology. So, even if Musk did post the tweet hoping to damage short sellers by boosting Tesla stock price, it wouldn't be illegal unless it were untrue, she said.

And it is unlikely a Wall Street firm would risk backing Tesla, which is burning through about $1 billion a quarter and has not had a single profitable year in its 15 years of existence, said another. The company is based in nearby Palo Alto, California.

"Musk has every right to say that he has a potential $420-per-share takeover bid lined up, provided that he doesn't sell stock into the hype", Cramer said this week.

"The goal of the securities law is to provide the capital markets with accurate information, and people's motivation are really beside the point", Fisch said.

Perhaps that's what was missing when Elon Musk and Masayoshi Son met a year ago.

That's a hard charge to prove, Pitt said. If it did, its punishments could range from imposing hundreds of millions of dollars in fines on Musk or Tesla to barring Musk from ever serving as an officer or director of a public company again, according to Pitt.

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