News
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
view the rest of the comments
He's damaging the company's finances in other ways now too.
He sold a bunch of Tesla stock (admittedly his right to do so) to buy Twitter. However, now he's demanding the board give him more stock so he'll have more control back. Uh, Mr. Musk, you HAD the stock and control, but you traded it away to buy a social media platform. No one made you do that. Further, why should the company give you more stock when another social media platform may catch your eye and you sell all your stock again. You just can't be trusted with it after your past behavior with it.
No thank you. No more Tesla control for you Mr. Musk.
How does the board "give" him stock? Isn't all of the stock owned by individuals? The board are a bunch of high-tier investors right?
Not usually. A company can issue stock, but never sell it. This is called "Treasury Stock". Further if the company doesn't have any Treasury Stock, they can choose to issue new rounds of stock diluting the per share value of existing shares. The good reasons to do this is to raise capital needed for new investments by the company. Alternatively the company could issue a "stock split" which creates double amount of shares as a way to intentionally cut the value per share in half (doubling the amount of share in the company).
However, none of these are a good thing to do for an employee (Musk) because they sold too much of their own pile of stock to buy a failing social media company.
Yes to your first question. This is why, when a company issues new stock (that isn't a split) the value of all the shares usually falls by a greater level than just the value issued. For publicly traded companies the leaders of the company have to act in the interests of shareholders. So if they tried to steel away the company by diluting stock, or enriching themselves, they would be in breech of their fiduciary responsibilities. There are legal consequences for that.
For privately held companies (not publicly traded), this is a common trope/scam for small companies. There are far fewer protections for private shareholders.
To be fair, while they didn't "make" him buy Twitter, they did twist his arm pretty good when presenting his options. Either it was a major federal financial crime, or he actually meant it and he was totally gonna follow through with it.
The "they" in your sentence was the SEC, not Tesla Inc.
Why should Tesla Inc be forced to part with more stock given to Mr. Musk to compensate for consequences of Mr. Musk's own actions wholly separate from his duties and responsibilities at Tesla Inc?
You mean he said a bunch of stupid shit that got him an a legal bind? Yeah still his fault.
He thought he could pull a fast one, fucked around and found out.
Then made it Tesla shareholders problem by cashing out tens of billions of Tesla stock.
He wasn't forced to go down the waterslide until he tried to stop halfway down.
He twisted his own arm. I didn't really read the specifics but given the securities fraud he committed that the SEC did not prosecute, this one must have been pretty serious.