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Elon Musk proved once again that the rules and regulations do not apply to him

May 19, 2022
Rufus Elledge
Elon Musk has proven once again that he can do things his own way, he released his announcement on Friday $ 44 billion deal To purchase Twitter has been suspended. He shared the news in a tweet rather than formally filing with the Securities and Exchange Commission. Contract-related drama continues to play out Series tweets Between Musk and company.
Because The SEC ruled again in 2013 Using Twitter and other social media sites is an acceptable way for public companies to publish material information, which may be one of the legal ways he violates the convention.

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 example: Recently Kasturi Acquired almost 10% on Twitter Stock – Without public disclosure when legally required.

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.

Musk waited 21 days for the release, during which time he bought a 9.6% stake in Twitter. Acquired message sent Twitter Shares soared even before he announced his attempt to buy the platform and take it private.

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.

The The Wall Street Journal The SEC said last week that it was investigating Musk’s late reporting of its shares on Twitter.

“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’s previous big battle with the SEC in 2018, when he tweeted “Funded secured” to take Telsa privatelySending more shares only emboldened the millionaire.
Musk at the end Paid a $ 20 million fine And he resigned as chairman of Tesla, although he held the title of CEO, and the SEC threatened to oust him as well. Tweets with information about Tesla should be recognized by others in the company, but it is not clear how closely he has complied with that requirement over the past four years.

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.

But Tesla has been ordered to recall its cars for making them exactly as planned. Musk complied, but he attacked security guards for demanding the manufacture of his vehicles Less “fun. ”Tesla did not face significant costs for its operations.
Tesla’s features include front-seat passenger access and driver’s handling. Play a video game Deliberately drives cars on the touch screen in the middle of the dashboard while the car is in motion Scroll through the stop signs When in self-driving mode.
Musk has been at loggerheads with the Federal Aviation Administration over the testing of SpaceX rockets without the necessary permits. For example, in 2020, the company conducted a brief test run of its upcoming Mars rocket, called the Starship, without providing the FAA with proper documentation or risk assessments. “Public health and safety“According to the agency.

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.

In the early days of the epidemic, musk Reopened his Tesla factory Closed due to stay order at home in California “Fascism. ”
The district health department, which finally ordered the closure of the business to prevent the spread of Govt-19, eventually Entered into his reopening plans.

– Jackie Watts of CNN Business contributed to this report

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