But over the years Musk’s many moves have broken the real rules, not only violated the rules, but nothing has slowed him down or changed his behavior.
Financial penalties imposed by regulators or business partners are small for the wealthy, such as Musk. If he walks in, tweets, and chooses to ignore the ordinary rules the ultra-rich will not apply to them.
An investor who buys 5% or more of a company’s stock has 10 days to issue a purchase, so other investors can find out what the impact is on stock prices.
If Musk had filed on time, it would have cost him more to accumulate the 15 million shares he bought after the 10-day deadline.
Daniel Taylor, a professor of accounting at the University of Pennsylvania, estimates that Musk saved $ 143 million by keeping the stock price lower than it should have been.
“It could be laziness or the belief that the rules don’t apply,” Taylor said. “But when the SEC files late, it’s very rare. In terms of cost-benefit, it makes sense not to file. [delay filing]? “
Musk is even more angry about the solution he signed with the SEC, claiming that the banks did so because they could have cut off Tesla’s funding and pushed the automaker into bankruptcy. But Taylor said the SEC’s action was slightly more than a whiplash.
“They had the opportunity to send a strong signal and chose not to,” Taylor said.
Musk ignored the other rules
The rules for disclosing ownership shares are only the latest in a long line of violations by Musk – with no effect.
Traditional automakers are reminded if they find a flaw in the design or construction of a car. That’s why the National Highway Safety Administration has named the Office of the Federal Controller, Consumer Complaints and Accident Data Monitoring Office the Disability Investigation Office.
Even before the test flight took off, the FAA denied the security waiver requested by SpaceX. But the company progressed anyway.
An FAA investigation took place, but SpaceX eventually came out with little more than “correct action” orders.
– Jackie Watts of CNN Business contributed to this report

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