JUST A BIT.
LATER IN THE SHOW WE'LL TALK
ABOUT THAT.
THE TOP STORY THIS HALF HOUR,
NEW QUESTIONS FOR TESLA.
THE AUTOMAKER'S BOARD IS SET TO
MEET THIS WEEK ABOUT FINANCING
IN THE AFTERMATH ABOUT THE CEO'S
TWEETS ABOUT TAKING THE COMPANY
PRIVATE.
THERE ARE CONFLICTING ABOUT
IN THE BUYOUT.
JOINING ME NOW, THERESA GOODY
AND TIM HIGGINS.
TIM, FIRST LET'S FIND OUT WHERE
DO WE STAND?
DOES ANYONE HAVE ANY SORT OF
IT'S ALMOST BEEN A WEEK SINCE
ELON MUSK PUT THAT TWEET OUT
AND THAT'S A STATEMENT THAT
COULD GET HIM IN TROUBLE IF THAT
FUNDING IS NOT SECURED TO TAKE
THEM PRIVATE.
CHARLES: EVERYONE'S ASKING, THE
LEGAL RAMIFICATIONS ON THIS.
I DO WANT TO SAY, I DO FIND IT
INTERESTING, AT LEAST WITH
SO BACK IN THE DAY IF THIS WAS
10 YEARS AGO, 20 YEARS AGO, THIS
IS THE KIND OF NEWS THAT WOULD
FIND ITS WAY THROUGH WALL
STREET, THE STOCK WOULD PICK UP,
YOU WOULD HAVE TO FOLLOW THE
VOLUME AND THEN IT WOULD BECOME
PUBLIC KNOWLEDGE.
IS THERE SOMETHING GOOD OR
POSITIVE ABOUT THE FACT THAT
MAYBE A CEO IS USING TWITTER
LIKE THIS.
>> I THINK IT WOULD BE GOOD IF
THE CEO WOULD USE TWITTER IN
ADDITION TO THE CUSTOMARY VENUES
THAT'S WHERE WE WOULD SEE SOME
REQUIREMENTS FOR DISSEMINATING
INFORMATION IN A WAY THAT IS
NON-EXCLUSION FAIRLY AND BROAD.
THE CONCERN IS WHETHER HE HAD
ANYBODY BLOCKED ON HIS TWITTER
AND WHETHER IT'S REASONABLE TO
EXPECT INVESTORS TO GO THROUGH
AND TROLL ALL OF THE DIFFERENT
SOCIAL MEDIA MEDIUMS.
CHARLES: WITH ALL DUE RESPECT,
I THINK OF MY OWN TESLA STOCK,
IT WOULD BE EASIER TO FOLLOW
TWITTER THAN TO WAIT FOR AN 8-K
TO BE DISTESTIMONY
TO BE SISTESTIMONY
TO BE SEETESTIMONY
TO BE SEEMESTIMONY
TO BE DEEMESTIMONY
TO BE DISMESTIMONY
TO BE DISSESTIMONY
TO BE DISSEMIIMONY
TO BE DISSEMINAONY
TO BE DISSEMINATEY
TO BE DISSEMINATED TO WALL
STREET AND FOR THEM TO COME UP
WITH UPGRADES AND DOWNGRADES BY
THE TIME I GET THE CHANCE TO
MARKET.
THERE'S STILL CONFUSION AS TO
WHETHER OR NOT THERE IS TRUTH IN
THE STATEMENTS, WHETHER THEY ARE
TRUE.
IT'S DIFFICULT TO MAKE THE KIND
OF DISCLOSURE REQUIRED FOR
SOMETHING OF THIS MAGNITUDE.
ALL OF THE DIFFERENT
CONSIDERATION, IT'S NEARLY
IMPOSSIBLE TO PUT FORWARD A
IT IN THOSE FEW OF WORDS.
WE DON'T KNOW WHAT IT MEANS.
THIS SEEMS TO ME AS THOUGH IT'S
VERY INEFFICIENT AND DIDN'T
DISSEMINATE THE INFORMATION THE
WAY THE SECURITIES LAWS INTENDS
DISCLOSURE TO OPERATE.
>> TAPING INTO YOUR SEC
BACKGROUND, YOU SPOKE ABOUT THE
BLOCKING AND WE KNOW THE
PRESIDENT AND ELON MUSK LIKE TO
BLOCK PEOPLE.
WHAT ARE THE LEGAL RAMIFICATIONS
THERE, ACCESS TO INFORMATION?
>> THE PRESIDENT HAS A
DIFFERENT ISSUE.
HE IS NOT THE CEO OF A PUBLIC
COMPANY.
SO GOING TO ELON MUSK, IF HE DID
BLOCK PEOPLE, THAT'S
NON-EXCLUSIONARY DISSEMINATION
OF INFORMATION, THAT BREAKS WHAT
THE REGULATION IS INTENDED TO
MAKE SURE THAT PEOPLE COMPLY
WITH.
IF YOU BLOCK PEOPLE, THEN IT'S
NOT EXCLUSIVE, OBVIOUSLY.
CHARLES: TURNING TO THE LEGAL
FALLOUT AND WE KNOW IT GOES
BEYOND ELON MUSK.
THERE'S A NEW STORY IN THE WALL
STREET JOURNAL THAT RAISES
QUESTIONS ABOUT WHY NASDAQ
WAITED SO LONG TO HALT THE
STOCK.
TO THERESA.
NORMALLY A COMPANY MIGHT TIP OFF
THE MARKETS, HEY, WE'RE GOT
MATERIAL NEWS COMING AND THEY
CAN DECIDE IF THEY NEED TO STOP
TRADING WHEN THAT HAPPENS.
BUT IT WOULD SEEM IN THIS CASE
THE MARKET WAS UNAWARE THIS WAS
GOING TO OCCUR AND PEOPLE
LEARNED ABOUT IT FROM TWITTER.
>> ONE OF THE QUESTIONS THAT
I'VE GOT IS A LOT OF PEOPLE SAY
THAT ELON MUSK IS LIKE THE
CORPORATE VERSION OF DONALD
TRUMP ON TWITTER.
AND ONE OF THE THINGS THAT
DONALD TRUMP DOES ON TWITTER IS
REALLY CONTROLS THE NEWS CYCLE
AND IS ABLE TO CHANGE THE
NARRATIVE VERY, VERY QUICKLY.
THERE'S A LOT OF NARRATIVE ABOUT
TESLA NOT DOING SO WELL AND THEN
THIS COMES OUT AND THIS IS ALL
WE'RE TALKING ABOUT.
DO YOU THINK THERE WAS ANYTHING
INTENTIONAL ABOUT THAT?
>> HE'S A PROLIFIC --
CHARLES: TIM AND THEN WE'LL GET
THERESA'S THOUGHT.
>> HE'S A PROLIFIC USER OF
TWITTER UNLIKE ANY OTHER CEO OUT
HE USES IT TO REALLY KIND OF
FLAME THAT FIRE, GET PEOPLE
EXCITED.
IT ALSO ATTRACTS PEOPLE THAT ARE
OUT TO GET HIM.
THERE'S ESSENTIALLY A WAR ON
TWITTER EVERY DAY, EITHER
TESLA'S UP OR IT'S DOWN.
CHARLES: THERESA, WE DO KNOW
THAT ELON MUSK HAS MASTERED THE
USE OF TWITTER AT KEY POINTS.
WHEN THE STOCK STARTS TO DRIP,
HE HAS A BIG TIME BATTLE WITH
THE SHORTS.
THERE'S A CONFERENCE CALL WITH
HIS $6 BILLION APOLOGY THAT SENT
THE STOCK NEAR ALL-TIME HIGHS.
HE IS A MASTER PUBLIC RELATIONS
GUY WHEN IT COMES TO TWITTER
ALTHOUGH IT COULD BE A DOUBLE
EDGED SWORD, RIGHT?
>> I THINK SO.
HE SAID THE COMPANY MAY HAVE
GONE BANKRUPT AS SOME SORT OF A
JOKE.
IT'S UNKNOWN EXACTLY WHAT HE
USES TWITTER FOR AND WHETHER OR
OR NOT IT'S USED FOR MORE JOKES.
ALL OF THIS ANALYSIS IS WHAT THE
THEY'RE ALSO GOING TO BE LOOKING
ANYBODY ELSE TRADE BEFORE THE
TWEET.
AND SO THIS IS GOING TO BE A
VERY IN-DEPTH SCRUTINY AS TO
TESLA AS WELL AS WHAT KIND OF
CAPITAL EXPENDITURES OR CAPITAL
DEALS THEY HAD GOING, THEY HAD
PLANNED, WAS THERE ANY REASON
THEY NEEDED THE STOCK PRICE TO
THE MARKETS IS A VIOLATION OF
THE SECURITIES LAWS.
HOW LONG SHOULD AN INVESTIGATION
LIKE THIS TAKE?
THROUGH AND LOOKING AT WHETHER
OR NOT TRADES OCCURRED BEFORE
THE TWITTER AND SO WHETHER OR
NOT SOMEBODY TRADED ON THAT
BEFOREHAND, THEY'RE GOING TO BE
LOOKING AT ALL THOSE DIFFERENT
TICKETS.
THIS COULD TAKE A CONSIDERABLE
AMOUNT OF TIME TO PROPERLY
INVESTIGATE AND I'M SURE THAT
THE FCC IS GOING TO FULLY
INVESTIGATE IT BEFORE ISSUING
ANY KIND OF A STATEMENT ON IT OR
THE RESULTS OF ITS
INVESTIGATION, ALTHOUGH IT IS
NOTEWORTHY THAT IT'S BEEN
REPORTED THAT THE FCC ALREADY
HAS SOME SORT OF INQUIRY
INVESTIGATION GOING INTO THE
COMPANY WHICH MEANS IT WAS
EASIER TO
EASIER FOR IT TO BROADEN THE
INVESTIGATION INTO THESE NEW
ALLEGATIONS WHICH MAKES IT ABLE
TO ACT MORE SWIFTLY.
CHARLES: THE SHORTS HAVE GOTTEN
WE'VE SEEN THAT OVER AND OVER
AGAIN.
IN FACT, IF THERE'S AN EMERGING
THEME I THINK DURING THE
EARNINGS SEASON IS THE SHORTS
GETTING CRASHED.
THEY ALWAYS SEEM TO BE ABLE TO
COME BACK, THEY SEEM TO HAVE
FRIENDS IN HIGH PLACES.
WHAT DOES THAT MEAN WITH RESPECT
MAY NOT BE AS BOMBASTIC AS AN
ELON MUSK BUT MAY FEEL LIKE
AN LISTS IS NOT WORTH --
ANALYSTS IS NOT WORTH IT
ANYMORE.
PRIVATE, HE SAYS, HE SAYS A
FOR HIM TO BE SUCCESSFUL, DESIRE
THAT'S ESSENTIALLY THE ARGUMENT
HE'S KIND OF MAKING THROUGH
TWITTER AND THIS MEMO THAT HE'S
SENT OUT TO HIS EMPLOYEES LAST
WEEK.
CHARLES: CERTAINLY INTRIGUING.
AS THE MARCH CREST STORY --
MARKET STORY, PERHAPS ONE OF THE
MARKET STORIES OF THE YEAR.