It took the SEC about two weeks to figure out that when Elon Musk tweeted that he had funding for going private at $420 per share, he was puffing. “Puffing” is a charitable description. The complaint alleges Mr. Musk misled shareholders. The SEC wants Mr. Musk ousted, and may seek to ban him from serving as an officer or director of a publicly traded company. Tesla shares dropped 9.9%, to $277. Mr. Musk has chosen to fight the suit, “I have always taken action in the best interests of truth, transparency, and investors. Integrity is the most important value in my life and the facts will show I never compromised this is any way.”
Not sure what the best interests of truth and transparency are. But, truth and transparency generally are in the best interests of investors. Either the $420 going-private statement was true or it was false. If it was false, it was not transparent. Whether it was true or false, transparent or opaque, the statement was never in the best interests of investors. Just look at the share price, the debt, and cash-burn rate.