At what point does this become securities fraud? Stock price manipulation by using obscene concentrations of wealth to prop up sibling companies?
There were investigations into this, but Musk shuttered all the agencies responsible before he fucked off again. Totally above board.
With the same move they are also defrauding investors at those companies.
That’s why he moved the companies to Texas from Delaware, because even though Delaware is ridiculously business friendly, they’ll actually defend shareholders’ rights there.
except deleware also deliver swift justice through the courts when things like these happens, which is why they move to texas.
Well yeah, that makes it business friendly. No corporation likes to be tied up in court for ages. Texas has just been trying to pass Delaware in a race to bottom of which state is the most business friendly (and thus anti-consumer, anti-environment, etc).
They didn’t move from Delaware, they moved from California…?
Tesla was incorporated in Delaware and its headquarters were in California. Now it is incorporated and headquartered in Texas.
Texas is clearly a bastion of fair business practices given that information 🍰
Tesla was incorporated in Delaware, like many other US corporations.
Obviously nothing changed physically, this is just a paperwork thing.
Large companies require fleets. Who says one company can’t buy from another? But what if he keeps buying and buying, beyond any reasonable use cases? What if the lots are full of unused trucks? Dunno.
That’s what bids are for. It gives at least plausible deniability if shareholders want to question a large contract later.
You can manipulate a bidding process to force the outcome you want, but if you are too obvious about it shareholders can still have a case.
Ah! Had not considered that. So, as usual, dumbass is being transparent.
Ya know, I actually think Elon is smarter than your average bear. But what must the billions, the ketamine, and the associated sycophants do to a man’s judgement? But for the grace of God, there go I.
Hmm, let me see who’s in charge of securities fraud…oh look it’s a Trump appointee. Likely put there for the explicit purpose of doing nothing.
There was some fraud in Canada where they were buying up their own stock so they could continue receiving subsidies or something. I don’t know what happened to that but it was in the news.
They applied for electric car refunds in batches, and worked through a massive fund when it was announced that it was being closed off, in a matter of a few days.
He saw how Nvidia was creating a nice circular flow of money in the AI industry and decided he wanted to try it too
It’s a little different when you own all the companies
Genious… rich people can never fail, because they can always pull themselves up by their bootstraps.
Why can’t the plebs do something so essential?What losers.
Seems kinda like fraud
This is called cooking the books.
It isn’t channel stuffing, because they are not over-supplying their regular sale channels.
yet
First you grind the truck. Then you add chromium, vanadium, molybdenum, copper and nickel into the same melt pot as the steel grinds. Let it all melt into a fine molten base. Finally extrude it into stainless sheets!
This is’nt really questionable behavior, yet, but it’s certainly unsustainable. Those companies require vehicles, especially SpaceX, and there’s nothing wrong with buying those vehicles from Tesla. But it’s hardly sustainable unless Musk claims the fleets wear out yearly. Hell, being Cybertrucks, that may turn out to be true.
But what if the parking lots of these companies start getting packed with unused Cybertrucks? What if he can’t pretend these are legitimate purchases? Anyone know what legal issues might exist?
Musk’s just kicking the can down the road on TLSA prices. It’s a bubble. I know it, you know it, he knows it. I just wish it would pop and the dust would settle before the monster AI bubble pops.
Considering SpaceX is a company for which government funding is crucial to its survival I disagree that’s its not questionable, most large companies would ensure their procurement procedures were exceptionally transparent - eg tender large procurements publically and make their selection process, justifications and outcome public so as to avoid any issues of nepotism, favouritism or flat out corruption that could harm the business.
This is a very large company that’s just bought a bunch of unreliable, unsellable excess product that it’s staff will be forced to rely on daily, purely because the CEOs side-business needs a bailout. What’s the bet they were sold close to retail price and will appear on Tesla’s quarterly report in December as a huge influx of Cybertruck sales? That might be good for Tesla but it sure isn’t good for SpaceX.
Wouldn’t it be just hilarious if his hubris destroyed spacex, his one company that was actually doing well, despite him.
Anyone know what legal issues might exist?
Any potential legal issue would be a civil, not criminal matter, and would be with the other xAI and SpaceX shareholders. Both are private companies, so if someone has issues with this, there could be a lawsuit, but more likely, it’ll result in a quiet settlement. If a lot of shareholders have an issue with this, then we’ll probably hear something about it.
