>>> GET READY, IT’S MY FAVORITE PART OF THE SHOW, MONEY, POWER,
POLITICS.
POLITICS. TODAY, WE’RE KEEPING AN EYE ON
ONE MAN, ONE COMPANY, TESLA.
THE SECURITIES AND EXCHANGE
COMMISSIONS SETTLED WITH TESLA
CEO ELON MUSK OVER THE WEEKEND
ON CHARGES STEMMING FROM MUSK’S
TWEET IN AUGUST ABOUT TAKING THE
COMPANY PRIVATE.
COMPANY PRIVATE. THE SETTLEMENT CALLS FOR A $20
MILLION FINE FROM BOTH TESLA AND
ELON MUSK.
ELON MUSK. IN ADDITION, MUSK WILL STEP DOWN
AS CHAIRMAN FOR THREE YEARS BUT
HE REMAINS CEO.
TWO NEW INDEPENDENT DIRECTORS
WILL BE BROUGHT ON TO THE TESLA
BOARD AND OVERSIGHT WILL BE
REQUIRED FOR ALL WRITTEN
COMMUNICATIONS FOR MUSK,
INCLUDING TWEETS.
INCLUDING TWEETS. FIRST, IS THIS A GOOD MOVE FOR
TESLA?
TESLA? EVERYONE CAN SAY, THIS IS A MASS
V FINE.
V FINE. IT’S NOT A MASSIVE FINE.
>> IT’S A MINUSCULE FINE.
>> ELON MUSK IS WORTH BILLIONS
AND BILLIONS OF DOLLARS.
>> TESLA’S WORTH $50 BILLION,
$60 BILLION.
$60 BILLION. ELON MUSK $50 BILLION,
$60 BILLION.
$60 BILLION. THE FINE DOUBLED, BY THE WAY.
HE TURNED DOWN THE OPPORTUNITY
TO PAY A $10 BILLION SO THE
S.E.C. SUED HIM AND HE SETTLED
FOR $20 MILLION.
IT’S POCKET CHANGE TO HIM.
>> TESLA IS WORTH WHAT DID YOU
SAY?
SAY? >> 60 BILLION-ISH.
>> $60 BILLION.
AND ELON MUSK IS SAYING TO
EMPLOYEES, GET EXCITED, GUYS, WE
MAY
MAY MAY BE ABOUT TO TURN A PROFIT.
SO TO THE AVERAGE PERSON OUT
THERE CAN YOU SPEAK TO THE
PERVERSENESS OF THAT.
THEY DON’T MAKE MONEY.
>> HE HASN’T BEEN ABLE TO BUILD
CARS.
CARS. THIS IS THE PROBLEM.
HE HAS MADE ALMOST NO CARS OVER
THE TEN YEARS OR SO THAT TESLA
HAS BEEN IN EXISTENCE.
HE HAS LOST MONEY, LOST MONEY,
LOST MONEY.
LOST MONEY. HE KEPT PROMISING PROFITABILITY
AROUND THE CORNER, PROMISING NEW
MODELS, PROMISING RAMPED UP
PRODUCTION AND EVERY TIME HE
MAKES A PROFIT, I MEAN EVERY
TIME HE MAKES A PROMISE HE FAILS
TO DELIVER ON IT.
>> WHAT COULD THIS PROMISE OR
THIS HINT EVEN TO EMPLOYEES BE
BASED ON?
BASED ON? EVEN BEFORE HE SENT OUT THE
INCORRECT, THE ENRAGED TWEET
GOING PRIVATE FOR 20, BEFORE HE
WENT ON A PODCAST IN CALIFORNIA
SMOKING WEED.
SMOKING WEED. HE WAS HAVING PROBLEMS WITH
MODEL 3 PRODUCTION.
HE KNEW COMPETITORS WERE GETTING
CARS OUT THERE.
WHAT COULD HE BE SPEAKING OF?
TALKING OUT OF SCHOOL IS WHY
SHORT SELLERS GO AFTER HIM.
>> YES.
>> YES. HE HAS THIS CRAZY SHORT-TERM
OBSESSION OF TRYING TO GET
TARGETS THIS WEEK, TRYING TO GET
THE STOCK PRICE UP TOMORROW.
THIS PROBABLY EXPLAINS WHY HE
SETTLED WITH THE S.E.C. BECAUSE
HE WANTS THE SHARE PRICE TO GO
UP, HE WANTS TO REDUCE BORROWING
COSTS.
COSTS. HE IS MAKING DECISIONS.
LIKE HE ACTUALLY TOLD THE S.E.C.
THAT HE CHOSE THAT 420 PRICE
BECAUSE HE WANTED TO IMPRESS HIS
GIRLFRIEND WITH A WEED JOKE.
>> JUST THINK ABOUT THAT FOR A
MOMENT.
MOMENT. BECAUSE HE WANTED TO IMPRESS HIS
GIRLFRIEND WITH A WEED JOKE.
WHAT DOES THIS DO TO MUSK IN
TERMS OF BEING SUED?
BEING SUED BY SHAREHOLDERS?
>> THERE WERE A LOT OF LAWSUITS
COMING AT MUSK FROM A MILLION
DIFFERENT DIRECTIONS, NOT JUST
SHAREHOLDERS.
SHAREHOLDERS. REMEMBER THERE IS A CAVE DIVER
IN THAILAND FOR SUING HIM FOR
LIBEL AND SLANDER AFTER MUSK
CALLED HIM APEDO FILE WITH
ABSOLUTELY NO EVIDENCE
WHATSOEVER.
WHATSOEVER. MUSK REINDICATESCREATES PROBLEMS
EVERY DAY.
EVERY DAY. IT’S GREAT THAT HE IS STEPPING
DOWN AS CHAIRMAN AND SOMEONE IS
GOING TO TRY TO GIVE HIM A
MODICUM OF OVERSIGHT BECAUSE
TESLA NEEDS THAT.
>> THERE WAS TALK THAT HE WOULD
HAVE TO STEP DOWN AS CEO, BUT HE
IS NOT LEAVING.
HE IS STAYING ON AS CEO.
THE BOARD IS ADDING TOWO
INDEPENDENT DIRECTORS.
INDEPENDENT DIRECTORS. IT’S STACKED WITH HIS HOME BOYS,
INCLUDING HIS BROTHER.
SHAREHOLDERS ARE LOVING IT.
>> THEY LOVE IT BECAUSE THE
S.E.C.’S LAWSUIT WHICH HAS GONE
AWAY, AND THAT WAS THE BIG
DANGER TO MUSK.
THERE IS PROBABLY $10 BILLION OF
MUSK PREMIUM IN THE SHARE PRICE.
IF HE GOES AWAY, $10 BILLION
GETS WIPED --
>> HE IS A BRANDING GENIUS.
>> HE IS A BRANDING GENIUS.
HE IS KIND OF NECESSARY FOR
TESLA TO EXIST, BUT HE IS ALSO A
CHAOS MONKEY.
CHAOS MONKEY. >> BUT WHY IS HE NECESSARY FOR
TESLA TO EXIST?
IF TESLA MAKES A GREAT PRODUCT,
ISN’T THAT ALL THAT MATTERS?
IF THE IDEA FROM THE S.E.C. IS,
WELL, IT’S A RISK TO THE COMPANY
AND THE BRAND IF HE IS NOT
THERE, AREN’T THEY SOMEHOW
GETTING THEMSELVES INVOLVED IN A
MARKETING SPOOF?
MARKETING SPOOF? >> RIGHT NOW THERE IS NO
INDICATION THAT TESLA HAS A
VIABLE BUSINESS MODEL.
IT’S NEVER ONCE MADE A PENNY OF
PROFIT.
PROFIT. ELON MUSK --
>> TESLA OWNERS LIKE IT?
>> IF YOU ARE LUCKY ENOUGH TO
HAVE A TESLA, YOU CERTAINLY LOVE
THAT TESLA.
THAT TESLA. THIS SELF-DRIVING CAPABILITY HAS
YET TO ARRIVE.
THERE IS NOT ACTUALLY INDICATION
THAT SELF-DRIVING IS SAFER LIKE
HE SAID IT WOULD BE.
SO I FEEL LIKE TESLA IS GOING TO
APPROACH THOSE LEVELS A BIT LIKE
FACEBOOK AND OTHER COMPANIES
WHERE PEOPLE USED TO LOVE IT AND
THEN START DISTRUSTING IT.
>> ONE BIG CHANGE, THE COMPANY
WILL HAVE OVERSIGHT OVER HIS
TWEETS?
TWEETS? ISN’T THAT THE CASE FOR ALMOST
ALL CEOs OUT THERE?
I CAN’T THINK OF ANOTHER COMPANY
WHOSE CEO GOES FULLY ROGUE.
ESPECIALLY PUBLIC COMPANIES.
THEY ARE SO CAREFUL.
>> MOST CEOs LISTEN TO THEIR
LAWYERS.
LAWYERS. THE BIG DIFFERENCE WITH ELON
MUSK, A BIT LICK DONALD TRUMP,
DON’T LISTEN TO THEIR LAWYERS
AND THEY TWEET WHAT THEY THINK.
THAT’S NEVER A GOOD IDEA IF YOU
ARE IN THAT PUBLIC ROLE.
>> WELL ELON MUSK ISN’T GOING